Jenny is deciding whether to buy a dress that she wants as well as where to buy it. local department shop located 15 min away from where she works, and pay $120 for the dress. Or she can go to a shop across town, located 30 min away, and pay $90. or she can go to out of town to a neighboring city, located a 1 hour away, and pay $85.
Janny makes $10 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $10 in lost income. Assume that returing to work takes Megan the same amount of time as getting to a shop and that it takes her 30 minutes to shop.
Question 1: The opportunity cost of her time if she chooses to buy the dress in the local department store is ?
Question 2: considering her opportunity cost and the prices of the dress that she exploits opportunities to minimize the cost of her dress. She will buy her dress it from where?