Nori is debating on a phone and where to get it. Several places have the same phone, but it's easier for her to get to some stores than others. Travel Time Each Way Price of phone Store (Minutes) (Dollars per phone) Local Phone Store 10 100 Across Town 25 Neighboring City 40 40 85 55 Nori makes $50 an hour at her job. Assume that returning to work takes Nori the same amount of time as getting to a store and that it takes her 40 minutes to shop. You can ignore the cost of gasoline and depreciation of her car when traveling. Assume she takes opportunity costs and the price into consideration when she shops. Nori will minimize the cost of the suit if she buys it from the a. local phone store O b. store across town C. store in the neighboring city d. not enough information given
Nori is debating on a phone and where to get it. Several places have the same phone, but it's easier for her to get to some stores than others. Travel Time Each Way Price of phone Store (Minutes) (Dollars per phone) Local Phone Store 10 100 Across Town 25 Neighboring City 40 40 85 55 Nori makes $50 an hour at her job. Assume that returning to work takes Nori the same amount of time as getting to a store and that it takes her 40 minutes to shop. You can ignore the cost of gasoline and depreciation of her car when traveling. Assume she takes opportunity costs and the price into consideration when she shops. Nori will minimize the cost of the suit if she buys it from the a. local phone store O b. store across town C. store in the neighboring city d. not enough information given
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Nori is debating on a phone and where to get it. Several places have the same phone, but it's easier for her to get to some stores than
others.
Store
Travel Time Each Way
(Minutes)
Price of phone
(Dollars per phone)
Local Phone Store
10
100
Across Town
25
85
Neighboring City
40
55
Nori makes $50 an hour at her job. Assume that returning to work takes Nori the same amount of time as getting to a store and that it takes
her 40 minutes to shop. You can ignore the cost of gasoline and depreciation of her car when traveling.
Assume she takes opportunity costs and the price into consideration when she shops. Nori will minimize the cost of the suit if she buys it
from the
a. local phone store
Ob. store across town
C. store in the neighboring city
Od. not enough information given
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