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Liza needs to buy a textbook for the next economics class. The price at the college bookstore is $65. One online site offers it for $55 and another site, for $57. All prices include sales tax. The accompanying table indicates the typical shipping and handling charges for the textbook ordered online.
Shipping method
Deliverytime
Charge
Standard shipping
3-7 days
$3.99
Second-day air
2
business days
8.98
Next-day air
1
business day
13.98
a. What is the opportunity cost of buying online instead of at the bookstore? Note that if you buy the book online, you must wait to get it.
b. Show the relevant choices for this student. What deter- mines which of these options the student will choose?
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