Question

In: Economics

Juanita makes $56 an hour at work. She has to take time off work to purchase her suit

StoreTravel Time Each Way (Minutes)Price of a Suit (Dollars per suit)
Local Department Store15100
Across Town3086
Neighboring City6063
Juanita makes $56 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $56 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.

StoreOpportunity Cost of Time (Dollars)Price of a Suit (Dollars per suit)Total Cost (Dollars)
Local Department Store
100
Across Town
86
Neighboring City
63

Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys from the _______.


Solutions

Expert Solution


Related Solutions

Juanita makes $16 an hour at work. She has to take time off workto purchase...
Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the suit: StoreTravel Time Each Way (Minutes)Price of a Suit (Dollars per suit)Local Department Store15103Across Town3087Neighboring City6064Juanita makes...
. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as...
. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $129 for the suit:    Store Travel Time Each Way Price of a Suit (Minutes)...
Juanita is a hard-working college sophomore. One Saturday, she decides to work nonstop until she has...
Juanita is a hard-working college sophomore. One Saturday, she decides to work nonstop until she has answered 100 practice problems for her economics course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem. Time Total Problems Answered 8:00 AM 0 9:00 AM 40 10:00 AM 70 11:00 AM 90 Noon 100 Use the table to...
Diane has a job working three quarter time. She hired her mother to take care of...
Diane has a job working three quarter time. She hired her mother to take care of her two small children so Diane could work. Do Diane’s child care payments to her mother quality for the child and dependent care credit?
Juanita is getting ready to do her taxes. She is single and lives in San Francisco.
2. Taxes paid for a given income levelJuanita is getting ready to do her taxes. She is single and lives in San Francisco. Juanita earned $100,000 in taxable income in 2015. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2015.On Annual Taxable Income...The Tax Rate Is...(Percent)Up to $9,22510.0From $9,225 to $37,45015.0From $37,450 to $90,75025.0From $90,750 to $189,30028.0From $189,300 to $411,50033.0From $411,500 to $413,20035.0Over $413,20039.6Based on the IRS table, Juanita calculates that her...
A person will decide to take the day off work if the? person has additional sick...
A person will decide to take the day off work if the? person has additional sick days to spare. marginal cost is less than the marginal benefit. marginal cost exceeds the marginal benefit. person can make up the missed work the next day. Which is not a typical way in which markets differ from one another? types of goods for sale in a market days of the week when markets are active transaction component between buyers and sellers geographic location...
Kiera requested Ronald, her manager, for an extended break from work because she wanted to take...
Kiera requested Ronald, her manager, for an extended break from work because she wanted to take a three-month course in gemology. However, Ronald refused to grant her leave. He explained to Kiera in a face-to-face meeting that there were too many projects with deadlines nearing, and he could not afford to let employees take long breaks Although argumentative at first, Kiera understood the problem and consented to stay and work. Which of the following is a reason why oral communication...
Maria is a 21-year-old single mother. On the way to work, she drops off her 3-year-old...
Maria is a 21-year-old single mother. On the way to work, she drops off her 3-year-old daughter at a community day care center and picks her up on the way home. Because her income is low, Maria works at a second job from home in the evening and rarely goes out for social interaction. For the last several days, her daughter has been sick with influenza, so Maria has stayed awake throughout the night to care for her. One morning,...
Hannah is planning to purchase her first home. She has spoken to the bank who has...
Hannah is planning to purchase her first home. She has spoken to the bank who has advised that she qualifies for a 25 year mortgage of $1,400,000 at an annual percentage rate of 6%. Payments will be made monthly and therefore interest will be compounded monthly. a. What is the effective annual rate on this loan? Calculate her monthly payment. Prepare an amortization schedule for the first two months of the loan.   
Trish must be at work exactly 40 hours/week where she earns $13/hour. While at work she...
Trish must be at work exactly 40 hours/week where she earns $13/hour. While at work she can engage in either Hard Work Hours or Easy Work Hours (where Hard Work Hours = 40 – Easy Work Hours). Trish earns a $24/hour commission for each hour of hard work she engages in, and also receives a $191 bonus if she engages in at least 30 hours of hard work in a given week. What is the vertical value of the vertical...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT