Questions 1. Howard needs to buy a laptop computer to start online university courses. The price at the local computer store is $650. The identical computer is available at one online site for $605 and another site for $622. All prices include the appropriate sales tax. The accompanying table indicates the typical shipping and handling charges for the computer ordered online. Shipping method Standard shipping Second-day air Next-day air Delivery time 3-7 days 2 business days 1 business day Charge $13.99 $18.98 $23.98

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Problem 1QTC
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1. Howard needs to buy a laptop computer to start online university courses. The price at the
local computer store is $650. The identical computer is available at one online site for $605 and
another site for $622. All prices include the appropriate sales tax. The accompanying table
indicates the typical shipping and handling charges for the computer ordered online.
Shipping method
Standard shipping
Second-day air
Next-day air
Delivery time
3-7 days
2 business days
1 business day
Charge
$13.99
$18.98
$23.98
a. Using the required textbook for the course, define "opportunity cost" in economic
terms.
UNIT 1 BU224 ASSIGNMENT TEMPLATE
(The true cost of anything is what you must give up to give it- all cost are opportunity
cost.)
b. In this situation, what are the opportunity costs of Howard choosing to buy online
instead of at the local computer store? Note that if you buy the computer online, you
must wait to get it.
(Howard choosing to buy online he would save hter your response here.)
Howard, including their differences in price and
Transcribed Image Text:224 Unit1_Assignm... O Search (Alt+Q) Caroline Donald= yout References Mailings Review View Help Questions 1. Howard needs to buy a laptop computer to start online university courses. The price at the local computer store is $650. The identical computer is available at one online site for $605 and another site for $622. All prices include the appropriate sales tax. The accompanying table indicates the typical shipping and handling charges for the computer ordered online. Shipping method Standard shipping Second-day air Next-day air Delivery time 3-7 days 2 business days 1 business day Charge $13.99 $18.98 $23.98 a. Using the required textbook for the course, define "opportunity cost" in economic terms. UNIT 1 BU224 ASSIGNMENT TEMPLATE (The true cost of anything is what you must give up to give it- all cost are opportunity cost.) b. In this situation, what are the opportunity costs of Howard choosing to buy online instead of at the local computer store? Note that if you buy the computer online, you must wait to get it. (Howard choosing to buy online he would save hter your response here.) Howard, including their differences in price and
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