# Microeconomics

Lisa needs to buy a textbook for the next economics class. The price at the bookstore is \$65. One online site offers the same book for \$55 and another site for \$57. All prices include sales tax. The following table indicates the typical shipping and handling charges for the textbook ordered online.

Delivery time = 3-7 days, S&H = \$3.99
Delivery time = 2 business days, S&H = \$8.98
Delivery time = 1 business day, S&H = \$13.98

a. What is the opportunity cost of buying online?
b. Show all relevant choices for this student.
c. What determines which of these options the student will choose?

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2. 👎 0
3. 👁 101
1. Take a shot, what do you think.
Hint: first eliminate the clear loser options. The \$57 purchase is a clear loser as one can make an online purchase for \$55. The 1-day delivery is also a clear loser. The opportunity cost of getting the book for \$58.99 instead of 65 is the possible 7-day wait. Take it from here.

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2. 👎 0

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