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-) Se cure https /courses aplia.com/at ser let/quiz?quiz,actionstakeOuz8quiz protGuid Q4PlCOA80 10 00000 4 1aa1seo oooactx a cl od-0t19&ckum; 1 a203 Apps A Amazon.com-OnlirImported From IE sf leaningadmin sf SuccessFactors lear ChoicePlus Benefits DA ? Price of Travel Time Each way (Minutes) 15 30 60 Suit Store Local Department Store Across Town Neighboring City (Dollars per suit) 122 90 78 Duanita makes $60 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $60 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 Total Cost (Dollars) Price of a Suit (Dollars per suit) 122 90 78 Opportunity Cost of Time (Dollars) Store Local Department Store Across Town Neighboring City es opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the Save & Continue S8:1 Grade It NowExplanation / Answer
Value of time = $60 per hour
If Juanita buys suit from Local departmental store travelling time is 15 minutes(one way)
Total time 30 minutes = 0.5 hour
Opportunity cost of time = 0.5×60 = $30
In case of Across city travel time = 30 minutes (one way)
Total travel time = 60 minutes = 1 hour
Opportunity cost of time = 1×$60 = $60
In case of neighbouring city travel time = 60 minutes (one way)
Total time = 2 hours
Opportunity cost of time = 2×$60 = $120
Juanita can minimize the cost of the suit if she buys it from the Across City Store.
Store Opportunity Cost of time cost of suit Total cost Local Store $30 $122 $152 Across city $60 $90 $150 Neighbouring City $120 $78 $198Related Questions
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