Question

Joe is shopping for a new computer. a computer can be delivered to joe's home for $1,200. alternatively, you can pick up the same computer at the warehouse for $1,000. how should joe buy the computer

Answer 1

I found the problem at https://www.coursepaper.com/econ-81640/


The choices were;
A. Joe should drive to the warehouse because $1,000 is less than $1,200.
B. Joe should drive to the warehouse if his cost of driving to the warehouse is less than $200.
C. Joe should drive to the warehouse if his cost of driving to the warehouse is greater than $200.
D. Joe should drive to the warehouse because the $200 he would save by driving to the warehouse is more than 10% of the purchase price.

The best answer would be letter d. Joe should drive to the warehouse because the $200 he would save by driving to the warehouse is more than 10% of the purchase price.

Joe can save more if he rather drives his purchased computer to his home than have a delivery. The cost of delivery was too high.