Attempts 1. Average 1/2 2. Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, Discounted price located 15 minutes away from where she works, and pay a Marked-up price marked-up price of $103 for the dress: Juanita's office Original price Travel Time Each Way Price of a Dress Store (Minutes) (Dollars per dress) Local Department Store 15 103 Across Town 30 87 Neighboring City 60 64 Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 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 (Dollars) Price of a Dress Total Cost Store (Dollars per dress) (Dollars) Local Department Store 103 Across Town 87 Neighboring City 64 Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress ifr she buys it from the Grade It Now Save & Continue Continue without saving
Attempts 1. Average 1/2 2. Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, Discounted price located 15 minutes away from where she works, and pay a Marked-up price marked-up price of $103 for the dress: Juanita's office Original price Travel Time Each Way Price of a Dress Store (Minutes) (Dollars per dress) Local Department Store 15 103 Across Town 30 87 Neighboring City 60 64 Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 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 (Dollars) Price of a Dress Total Cost Store (Dollars per dress) (Dollars) Local Department Store 103 Across Town 87 Neighboring City 64 Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress ifr she buys it from the Grade It Now Save & Continue Continue without saving
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.9P
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Transcribed Image Text:1.
Average 1/2
Attempts
2. Determining opportunity cost
Juanita is deciding whether to buy a dress that she wants, as
well as where to buy it. Three stores carry the same dress,
but it is more convenient for Juanita to get to some stores
than others. For example, she can go to her local store,
Discounted
price
located 15 minutes away from where she works, and pay a
Marked-up
price
marked-up price of $103 for the dress:
Juanita's office
Original price
Travel Time Each Way
Price of a Dress
Store
(Minutes)
(Dollars per dress)
Local Department Store
15
103
Across Town
30
87
Neighboring City
60
64
Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 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 Dress
Total Cost
Store
(Dollars)
(Dollars per dress)
(Dollars)
Local Department Store
103
Across Town
87
Neighboring City
64
Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if
she buys it from the
Grade It Now
Save & Continue
Continue without saving
NOV 1
26
8.
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