Question

Search this course Deic Homework (Ch 01) 129 86 63 15 Across Town Neighboring City Juanita makes $50 an hou Assume that returning to work takes Juanita th the following questions, ignore the cost of gasoline and depreciation of her car when traveling. r at work. She has to take time off work to purchase her suit, so each hour away from work costs her $50 in lost income. e same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location, Total Cost (Dollars) price of a suit (Dollars per suit) 129 86 63 Opportunity Cost of Time (Dollars) Across Town Neighboring City Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the sult if

Answer 1

Answer : Table showing information as follows :

Store	Opportunity cost of time ($)= Time to purchase the suit + Traveling time	Price of a suit ($)	Total cost ($)
Local department store	15 minutes+ 60 minutes= 75 minutes $12.5+$50 $62.5	$129	$191.5
Across town	30minutes + 60 minutes= 90 minutes =$25+$50= $75	$86	$161
Neighbouring City	60minutes + 60 minutes= 120 minutes= $50+$50= $100	$63	$163

Assume that Junita takes opportunity cost and the price of the suit into a consideration and minimize cost at the point where she buys from the across town.As across town has minimum cost.