Where should she buy the suit

Assignment Help Microeconomics
Reference no: EM13319164

Hannah is deciding whether to buy a suit she wants as well as where to get it. Three shops carry the same suit. She can go to her local department store, located 15 minutes away from where she works, and pay $120 for the suit. She can travel to a shop across town, located 30 minutes away from where she works, and pay $90 dollars for the suit.

Finally, she can take an hour drive to out of town to a neighboring city and pay 84 for the suit. Hannah makes $85 dollars and hour where she works. She has time to take off work to purchase her suit, so each hour away from work is 80 dollars in lost income.

Assume that returning to work takes the same amount of time as getting to a shop and that it takes her 30 minutes to shop. What is the opportunity cost if she chooses to purchase the suit in the neighboring city? And assume that Hannah takes opportunity costs and the price of the suit into consideration and that she exploits opportunities to minimize the cost of her suit.

Given this assumption, where should she buy the suit?

Reference no: EM13319164

Questions Cloud

Plot magnitude of the force exerted on the gate by the brace : A 200lb homogeneous gate of 10ft width and 5ft length is hinged at point A and held in place by 12ft long brace as the bottom of the brace is moved to the right the water level remains at the top of the gate.
How many units will be traded at a price : The market for DVD’s has a supply and demand curve P’= 2Qs and P=42-Qd a. How many units will be traded at a price of $35? At $14? Which participants will be dissatisfied at these prices?
Compute the potential of a hydrogen electrode : Calculate the potential of a hydrogen ( p= 1.02 atm) electrode in an aqueous solution of HBr (0.05 m ) at 298 K A) assuming ideal solute behavior. B) using the Deby- Huckel equation.
Absolute maximum non-dimensional shear stress : Bearing stresses are very common in aerospace engineering. It occurs on the surface of contact between any two structural members. Bolts, pins, and rivets are classic examples of where bearing stresses occur.
Where should she buy the suit : Finally, she can take an hour drive to out of town to a neighboring city and pay 84 for the suit. Hannah makes $85 dollars and hour where she works. She has time to take off work to purchase her suit, so each hour away from work is 80 dollars in lost..
Determine number of window air conditioning units required : A classroom that normally contains 40 people is to be air conditioned with window air conditioning units of 5 kW cooling capacity. A person at rest may be assumed to dissipate heat at a rate of about 360kJ/h
Explain the solution with the highest ph : Which one of the following salts, when dissolved in water, produces the solution with the highest pH. and WHY. KCl, KF, KI, KBr
Write material balance to describe rate of change in amount : Draw a diagram of the room with all of the important parameters noted with symboles. Write a material balance to describe the rate of change in the amount of benzene in the air of the room starting from the time the bottle was opened onwards.
What will happen to the equilibrium price and quantity of : If the market for alcoholic beverages is in equilibrium, then the drinking age is reduced from 21 to 18 what will happen to the equilibrium price and quantity of alcoholic beverages.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Eco questions

Soft drink advertising. (5%) The soft drink producer may use TV advertising for stimulation of sales. The cost of advertising is 20 000 euro per 30 seconds commercial, but after ten commercials per day there is a discount of 50% for all additional co..

  Determine what additional steps apples competitors

Apple, determine how market commonality and resource similarity impact Apple's competitive standing in terms of its main rivals. Provide specific examples to support your response. Determine what additional steps Apple's competitors are likely to t..

  Discuss the income and consumption relationship

Discuss and explain the income and consumption relationship make sure to describe marginal propensity to consume. If you received an extra dollar, how much of it would you spend?

  Equation of marginal revenue

Find out the quantity at which profits are maximal. given that quantity, find out the price charged and monopolist's profits. (solve for answers using the equations)

  Is the measure stabilizing or destabilizing

Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..

  Discuss the model or economic theory

Conduct a meta-analysis of the author's economic perspective of the issue, provide a brief overview / synopsis of the issue and discuss the model or economic theory that relates to the issue presented in the news article.

  Explain the revival in the growth of productivity

Which of the following is NOT an explanation for the revival in the growth of productivity starting in the mid 1990s? A)Cell phones and wireless Internet access increase worker flexibility. B)Internet use has increased the efficiency of how firms b..

  The market failure of external cost

A copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water.

  What provisions offer about estimate of elasticity

According to Exhibitor Relations Co., in 2006 average movie ticket prices were $6.55 and attendance was 1.4 billion; in 2007 ticket prices were $6.88 and attendance was 1.41 billion.a. What happened to total revenue from 2006 to 2007?

  Analyze the case of ai dynamite

Mary Smith, a customer, buys the Best product to use in the demolition of her office building. Due to a defect in the product, John Doe, an employee of Mary's, is injured. He sues Mary Smith, Best and AI. Discuss the ramifications of this case if ..

  How the egg breaking rampage affects egg prices

Would you consider the demand for eggs to be elastic or inelastic and illustrate and explain with a diagram how can the Government intervene and correct this situation

  Determine firm minimizing costs

Is the firm minimizing costs? If not, what steps should it take to lower costs and still produce the same level of output?Is the firm minimizing costs? If not, what steps should it take to lower costs and still produce the same level of out..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd