Problem: Determining opportunity cost
Suppose that Ciana is deciding whether or not to buy a pair of boots that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the boots she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $115 for the boots: A map of an area that displays Ciana's office and three stores. The store with the marked-up price is the closest to Ciana's office toward the northwest. The discounted price store is the farthest and it is toward the northeast of Ciana's office in a different area, and the store with the original price is towards the east of Ciana's office (across the river). Store Travel Time Each Way Price of a Boots (Minutes) (Dollars per boots) Local Shoe Store 15 115 Different Neighborhood in Town 30 98 Rural Outlet 60 75 Ciana earns an hourly wage of $20 at her job. In order to purchase her boots she will have to take time off work, so each