Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress

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answerhappygod
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Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress

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Juanita is deciding whether to buy a dress that she wants, aswell as where to buy it. Three stores carry the same dress, but itis more convenient for Juanita to get to some stores than others.For example, she can go to her local store, located 15 minutes awayfrom where she works, and pay a marked-up price of $129 for thedress:
Store
Travel Time Each Way
Price of a Dress
(Minutes)
(Dollars per dress)
Juanita makes $50 an hour at work. She has to take time off workto purchase her dress, so each hour away from work costs her $50 inlost income. Assume that returning to work takes Juanita the sameamount of time as getting to a store and that it takes her 30minutes to shop. As you answer the following questions, ignore thecost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity costof Juanita's time and the total cost of shopping at eachlocation.
Store
Opportunity Cost of Time
Price of a Dress
Total Cost
(Dollars)
(Dollars per dress)
(Dollars)
Assume that Juanita takes opportunity costs and the price of thedress into consideration when she shops. Juanita will minimize thecost of the dress if she buys it from the .
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