Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Sneakers (Dollars per sneakers) 112 Store Local Shoe Store Different Neighborhood in Town Rural Outlet Assume that Ciana considers both her o buying the sneakers if she shops at the local shoe store 98 store in the different neighborhood in town rural outlet Total Cost (Dollars) Jen making her shopping decision. Ciana will minimize her cost of
Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Sneakers (Dollars per sneakers) 112 Store Local Shoe Store Different Neighborhood in Town Rural Outlet Assume that Ciana considers both her o buying the sneakers if she shops at the local shoe store 98 store in the different neighborhood in town rural outlet Total Cost (Dollars) Jen making her shopping decision. Ciana will minimize her cost of
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 25AA
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2. Determining opportunity cost
Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sneakers she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $112 for the sneakers:
Ciana earns an hourly wage of $42 at her job. In order to purchase her sneakers 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 sneakers, 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.
Transcribed Image Text:Store
Local Shoe Store
Different Neighborhood in Town
Rural Outlet
Travel Time Each Way
(Minutes)
15
30
60
Price of a Sneakers
(Dollars per sneakers)
112
98
86
Transcribed Image Text:Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location.
Opportunity Cost of Time
(Dollars)
Price of a Sneakers
(Dollars per sneakers)
112
Store
Local Shoe Store
Different Neighborhood in Town
Rural Outlet
Assume
Ciana considers both her o
buying the sneakers if she shops at the
local shoe store
98
store in the different neighborhood in town
rural outlet
Total Cost
(Dollars)
en making her shopping decision. Ciana will minimize her cost of
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