Computing the opportunity cost of juanita time

Reference no: EM131773878

Question:

Store	Travel Time Each Way	Price of a Dress
Store	(Minutes)	(Dollars per dress)
Local Department Store	15	104
Across Town	30	87
Neighboring City	60	80

Juanita makes $36 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $36 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.

Store	Opportunity Cost of Time	Price of a Dress	Total Cost
Store	(Dollars)	(Dollars per dress)	(Dollars)
Local Department Store		104
Across Town		87
Neighboring City		80

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.

Reference no: EM131773878

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