Question
Store Travel Time Each Way Price of a Sandals (Minutes) (Dollars per sandals) Local Shoe Store 15 112 Different Neighborhood in Town 30 98 Rural
Store | Travel Time Each Way | Price of a Sandals |
---|---|---|
(Minutes) | (Dollars per sandals) | |
Local Shoe Store | 15 | 112 |
Different Neighborhood in Town | 30 | 98 |
Rural Outlet | 60 | 86 |
Ciana earns an hourly wage of $42 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $42 in lost income. Assume that Ciana's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Ciana incurs no additional costs other than the sandals, such as gas.
Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location.
Store | Opportunity Cost of Time | Price of a Sandals | Total Cost |
---|---|---|---|
(Dollars) | (Dollars per sandals) | (Dollars) | |
Local Shoe Store | 112 | ||
Different Neighborhood in Town | 98 | ||
Rural Outlet | 86 |
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