Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 Discounted price minutes away from where she works, and pay a marked-up Marked-up price price of $104 for the suit: Juanita's office Original price Travel Time Each Way Price of a Suit Store (Minutes) (Dollars per suit) Local Department Store 15 104 Across Town 30 87 Neighboring City 60 08 Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 Discounted price minutes away from where she works, and pay a marked-up Marked-up price price of $104 for the suit: Juanita's office Original price Travel Time Each Way Price of a Suit Store (Minutes) (Dollars per suit) Local Department Store 15 104 Across Town 30 87 Neighboring City 60 08 Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The answer choices for the fill in the blank is local department store, store in the neighboring city, and store across town
![Juanita is deciding whether to buy a suit that she wants, as
well as where to buy it. Three stores carry the same suit, but
it is more convenient for Juanita to get to some stores than
others. For example, she can go to her local store, located 15
Discounted
price
minutes away from where she works, and pay a marked-up
Marked-up
price
price of $104 for the suit:
Juanita's office
Original price
Travel Time Each Way
Price of a Suit
Store
(Minutes)
(Dollars per suit)
Local Department Store
15
104
Across Town
30
87
Neighboring City
60
80
Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income.
Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. AS you answer
the following questions, ignore the cost of gasoline and depreciation of her car when traveling.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb146ecc-45b9-4e2d-83a0-f90a74879350%2Fa5d8aa59-31b6-43d3-b4a6-311d7fe6c3fd%2Fomzd58o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Juanita is deciding whether to buy a suit that she wants, as
well as where to buy it. Three stores carry the same suit, but
it is more convenient for Juanita to get to some stores than
others. For example, she can go to her local store, located 15
Discounted
price
minutes away from where she works, and pay a marked-up
Marked-up
price
price of $104 for the suit:
Juanita's office
Original price
Travel Time Each Way
Price of a Suit
Store
(Minutes)
(Dollars per suit)
Local Department Store
15
104
Across Town
30
87
Neighboring City
60
80
Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income.
Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. AS you answer
the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
![Travel Time Each Way
Price of a Suit
Store
(Minutes)
(Dollars per suit)
Local Department Store
15
104
Across Town
30
87
Neighboring City
60
80
Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income.
Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer
the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Opportunity Cost of Time
Price of a Suit
Total Cost
Store
(Dollars)
(Dollars per suit)
(Dollars)
Local Department Store
104
Across Town
87
Neighboring City
80
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if
she buys it from the
local department store](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb146ecc-45b9-4e2d-83a0-f90a74879350%2Fa5d8aa59-31b6-43d3-b4a6-311d7fe6c3fd%2F82ct4dia_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Travel Time Each Way
Price of a Suit
Store
(Minutes)
(Dollars per suit)
Local Department Store
15
104
Across Town
30
87
Neighboring City
60
80
Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income.
Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer
the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Opportunity Cost of Time
Price of a Suit
Total Cost
Store
(Dollars)
(Dollars per suit)
(Dollars)
Local Department Store
104
Across Town
87
Neighboring City
80
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if
she buys it from the
local department store
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education