Respuesta :
The opportunity costs of time are as follows;
Local = $16
Across time = $24
Neighboring city =$40
The total Costs are as follows;
local = 119
across town = 113
neighboring city = $103
Opportunity Cost
We are told that she makes $16 an hour at work.
We are told it takes her 30 minutes to shop. Also that she loses $16 for each hour away from work. Thus;
Across time = $16 + ¹/₂(16)
Across time = $24
Neighboring city will have cost of $40
Therefore the opportunity costs of time are as follows;
- Local = $16
- Across time = $24
- Neighboring city =$40
Total costs for the different time conditions for each store are;
local = $103 + $16 = 119
across town = $89 + $16 + $8 = 113
neighboring city = $63 + $16 + $16 + $8 = $103
We can see that the cost at the neighboring costs the least and as such i will advice that she should go to neighboring city.
The missing part of the question is that;
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.
3 stores:
Local department store: travel time each way: 15 min $ 103
across town: 30 min $89
diff city: 60 min $63
Find opportunity cost of time and total cost of each store (dollars.
Where should she buy her suit from?
Read more about opportunity cost at; https://brainly.com/question/8846809
