Solved:
Answered by AI, Verified by Human Experts
Ciana earns an hourly wage of 558 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her 458 in lost income. Assume that Ciana's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Cians incurs no additional costs other than the sneakers, such as gas. Compiete the following table by computing the opportunity cost of Clana's time and the total cost of shopping at each location. Assume that Clana considers both her ogportunity costs and the price of sneakers when making her shopping decision, Clana will minimize her cost of buying the sneakers if she shops at the Clana earns an hourly wage of $58 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $58 in lost income. Assume that Ciana's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Ciana incurs no additional costs other than the sneakers, such as gas. Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location.
Ciana earns an hourly wage of 558 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her 458 in lost income. Assume that Ciana's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Cians incurs no additional costs other than the sneakers, such as gas. Compiete the following table by computing the opportunity cost of Clana's time and the total cost of shopping at each location. Assume that Clana considers both her ogportunity costs and the price of sneakers when making her shopping decision, Clana will minimize her cost of buying the sneakers if she shops at the Clana earns an hourly wage of $58 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $58 in lost income. Assume that Ciana's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Ciana incurs no additional costs other than the sneakers, such as gas. Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location.
Final answer:Theopportunity costof Ciana's shopping trip is $87, which is computed bymultiplyingher total time spent shopping (1.5 hours) by her hourly wage ($58/hour). In deciding where to shop, she needs to consider both the cost of the sneakers and her opportunity cost, choosing the location that minimizes the combined total.Explanation:To compute theopportunity costof Ciana's time, you multiply the number of hours she spends shopping by her hourly wage rate. Her total time spent shopping would be the travel time each way plus the 30 minutes spent at the store. If she spent 1 hour traveling (round trip), plus 0.5 hours shopping, that's a total of 1.5 hours. At a wage rate of $58 per hour, her opportunity cost of shopping would be $87 (1.5 hours x $58/hour).In determining where to shop, Ciana must consider both this opportunity cost and the cost of the sneakers. A store with lower priced sneakers may seem preferable, but if it takes longer to get there, theadditional costsin terms of lost income from work may offset the savings.Therefore, Ciana would have to do this calculation for each potential shopping location and choose the one which minimizes the combined cost of the sneakers and the opportunity cost of her time spentshopping.Learn more about Opportunity Cost here:brainly.com/question/12121515#SPJ1...