Ken Anderson
New member
Sally is deciding where to buy a pair of shoes that she wants. Three stores carry the same pair of shoes. She can go to her local department store, located 15 minutes away from where she works, and pay $120 for the pair. She can travel to a store across town, located 30 minutes away from where she works, and pay $90 for the pair. Finally, she can take a one-hour drive out of town to a city close by, and pay $85 for the shoes.
Sally has to take time off work to purchase her shoes and she makes $10 an hour, so each hour away from work costs her $10 in lost income. Assume that returning to work takes the same amount of time as getting to a store, and it takes Sally 30 minutes to shop. Answer the following question.
What is the opportunity cost of her time if she chooses to purchase the pair of shoes in the neighbouring city?
A)$30
B)$20
C)$15
D)$25
???
Sally has to take time off work to purchase her shoes and she makes $10 an hour, so each hour away from work costs her $10 in lost income. Assume that returning to work takes the same amount of time as getting to a store, and it takes Sally 30 minutes to shop. Answer the following question.
What is the opportunity cost of her time if she chooses to purchase the pair of shoes in the neighbouring city?
A)$30
B)$20
C)$15
D)$25
???