Local Department Store Across Town Neighboring City Travel T

Local Department Store Across Town Neighboring City Travel Time Each way (Minutes) 15 Price of a Dress (Dollars per dress) 100 86 63 Duanita makes $56 an hour at work. She has to take time off work to purchase her dress, so each hour Assume that returning to work takes Juanita the same amount of time the following questions, ignore the cost of gasoline and depreciation of her car when traveling 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 Opportunity Cost of Time Price of a Dress (Dollars per dress) 100 Total Cost Dollars) (Dollars) Local Department Store Neighboring City 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 she buys it from the Copyright Notices Terma of UsePrivacy NoticeSecurity NoticeAccesiblity MacBook A 3 5

Solution

Junatia will minimise the cost if she will buy thhe dress from local department store.

Explanation:

Local Department Store:

Time taken to go to local department shop = 15 min

Time taken to return to work = 15 min (as time taken to return back to work = time taken to go to that place)

time taken for shopping = 30 min

Total time taken = 60 min = 1 hour

Since she losses $56 per hour by not working, the opportunity cost of her time = $56 * 1 = $56

Total cost = Opportunity Cost + Cost of dress

               = $56 + $100 = $156

Across Town:

Time taken to go to local department shop = 30 min

Time taken to return to work = 30 min (as time taken to return back to work = time taken to go to that place)

time taken for shopping = 30 min

Total time taken = 60 min = 90 min or 1.5 hour

Since she losses $56 per hour by not working, the opportunity cost of her time = $56 * 1.5 = $84

Total cost = Opportunity Cost + Cost of dress

               = $84 + $86 = $170

Neighbouring City:

Time taken to go to local department shop = 60 min

Time taken to return to work = 60 min (as time taken to return back to work = time taken to go to that place)

time taken for shopping = 30 min

Total time taken = 150 min = 2.5 hour

Since she losses $56 per hour by not working, the opportunity cost of her time = $56 * 2.5 = $140

Total cost = Opportunity Cost + Cost of dress

               = $140 + $63 = $203

Store	Opportunity cost of time(dollars)	Price of a dress(dollar per dress)	Total cost(dollars)
Local Department Store	$56	$100	$156
Across town	$84	$86	$170
Neighbouring City	$140	$63	$203