opportunity cost

opportunity cost

Beth is deciding whether to buy a suit that she wants, as wellas where to buy it. Three stores carry the same suit. She can goher local department store, located
15 minutes away from where sheworks, and pay 4120 for the suit. She can travel to a store acrosstwon, located 30 minutes away from where she works, and pay 90$
forthe suit. Finally, she can take a one-hour drive out of town to aneghboring city, and pay $85 for the suit. Beth has to take tiem off work to purchase her suit,
and she makes$80 an hour, so each hour away from work costs her $80 in lostincome. Assum that returning to work takes the same amount of timeas getting to a store,
and it take Beth 30 minutes a shop. Answerthe following questions, ignoring the cost of gasoline anddepreciation of her car when traveling. *The opportunity cost
of her time if she chooses to purchase thesuit in the store across twon is:. 1.$120 2.$80 3.$40 4.$160 * Assume that Beth takes opportunity costs and the price of
thesuit into consideration, and that she exploits opportunities tominimize the cost of her suit. Given this assumption, if Beth buysa suit, she will buy her suit
at: 1. the store in the neighboring city 2. her local department store 3. the store across town

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