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4 years ago

Store Travel Time Each Way Price of a Dress

Business

1 answer:

serious [3.7K]4 years ago

4 0

Answer and Explanation:

For the local departmental store

As the person travels 30 minutes but the person sacrificed $36 for an hour at work so here the opportunity cost of the time is $36

For the across town

The person J travel time is 60 minutes ( 30 + 30) and her shopping time is 30 minutes but sacrificed $36

So the opportunity cost is

= 60 minutes + 30 minutes

= 90 minutes

= $54

For the neighbor city

The person J travel time is 120 minutes (120 + 120) and her shopping time is 30 minutes but sacrificed $36

So the opportunity cost is

= 120 minutes + 30 minutes

= 150 minutes

= $90

Now the table is

Store Opportunity Cost Price of a Dress Total Cost

of Time

(Dollars) (Dollars per dress) (Dollars)

Local

Department

Store 36 104 140

Across Town 54 87 141

Neighboring City 90 80 170

So she should buy from the local department cost as it contains the minimum cost

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Solution

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