A consumer might buy from a high-priced local hardware store instead of going to a big discount store several miles away because _____
A)the local store will still have lower money prices.
B)the time cost of going to the local store is equal to going to the discount store.
C)the local hardware store is a bargain for people who value time highly.
D)the local hardware store is a bargain for people who earn low hourly wages.
E)the time cost of going to the discount store is less than going to the local hardware store.

Question

Quizplus · Accepted Answer

This is because the local hardware store offers the consumer the benefit of saving time by not having to travel several miles to the discount store. The consumer values time highly and is willing to pay a higher money price for the convenience of shopping at a store that is close by. Therefore, the local hardware store is a bargain for people who value time highly, as they are able to save on opportunity cost.

A Consumer Might Buy from a High-Priced Local Hardware Store