Not a previously graded question. Suppose that Ciana is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $122 for the sandals: Ciana earns an hourly wage of $26 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $26 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her
Not a previously graded question. Suppose that Ciana is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $122 for the sandals: Ciana earns an hourly wage of $26 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $26 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Not a previously graded question.
Suppose that Ciana is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $122 for the sandals:
Ciana earns an hourly wage of $26 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $26 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Ciana incurs no additional costs other than the sandals, such as gas.
Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location.
Transcribed Image Text:Store
Local Shoe Store
Different Neighborhood in Town
Rural Outlet
Travel Time Each Way
(Minutes)
15
30
60
Price of a Sandals
(Dollars per sandals)
122
105
75
Transcribed Image Text:CENGAGE MINDTAP
Module One Quiz
Store
Local Shoe Store
Search this course
Different Neighborhood in Town
Rural Outlet
i
Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each
Opportunity Cost of Time
(Dollars)
Price of a Sandals
(Dollars per sandals)
122
105
75
X
Total Cost
(Dollars)
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