Answer:
She buys it from the "Neighboring city". The further explanation is given below.
Explanation:
The cost of opportunity while shopping from Local dept. store:
= [tex](15\times 2+30)\times 16[/tex]
= [tex](30+30)\times 16[/tex]
= [tex]1 \ hour\times 16[/tex]
= [tex]16[/tex]
The cost of opportunity while shopping from across town:
= [tex](30\times 2+30)\times 16[/tex]
= [tex](60+30)\times 16[/tex]
= [tex]1.5 \ hours\times 16[/tex]
= [tex]24[/tex]
The cost of opportunity while shopping from neighboring class:
= [tex](60\times 2+30)\times 16[/tex]
= [tex](120+30)\times 16[/tex]
= [tex]2.5 \ hours\times 16[/tex]
= [tex]40[/tex]
Now,
Store Opp. Cost Price Total cost
Local dept. store 16 103 119
Across town 24 89 109
Neigh. city 40 63 103
Therefore, a Neighboring city would be the right answer.