Store Local Shoe Store (Minutes) 15 Travel Time Each Way Price of a Boots (Dollars per boots) 112 Different Neighborhood in Town 30 98 Rural Outlet 60 86 Juanita earns an hourly wage of $42 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $42 in lost income. Assume that Juanita'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 Juanita incurs no additional costs other than the boots, such as gas. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Store Local Shoe Store Different Neighborhood in Town Rural Outlet Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 112 Total Cost (Dollars) 98 86 Assume that Juanita considers both her opportunity costs and the price of boots when making her shopping decision. Juanita will minimize her cost of buying the boots if she shops at the rural outlet
Store Local Shoe Store (Minutes) 15 Travel Time Each Way Price of a Boots (Dollars per boots) 112 Different Neighborhood in Town 30 98 Rural Outlet 60 86 Juanita earns an hourly wage of $42 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $42 in lost income. Assume that Juanita'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 Juanita incurs no additional costs other than the boots, such as gas. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Store Local Shoe Store Different Neighborhood in Town Rural Outlet Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 112 Total Cost (Dollars) 98 86 Assume that Juanita considers both her opportunity costs and the price of boots when making her shopping decision. Juanita will minimize her cost of buying the boots if she shops at the rural outlet
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.1P
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Transcribed Image Text:Store
Local Shoe Store
(Minutes)
15
Travel Time Each Way
Price of a Boots
(Dollars per boots)
112
Different Neighborhood in Town
30
98
Rural Outlet
60
86
Juanita earns an hourly wage of $42 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job
costs her $42 in lost income. Assume that Juanita'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 Juanita incurs no additional costs other than the boots, such as
gas.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store
Local Shoe Store
Different Neighborhood in Town
Rural Outlet
Opportunity Cost of Time
(Dollars)
Price of a Boots
(Dollars per boots)
112
Total Cost
(Dollars)
98
86
Assume that Juanita considers both her opportunity costs and the price of boots when making her shopping decision. Juanita will minimize her cost of
buying the boots if she shops at the
rural outlet
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