Brand x, which currently markets luxury watches via billboards and advertisements in popular magazines, is considering saving money by advertising its newest line of luxury watches only in niche publications read by the wealthy. a recent study shows that most purchasers of brand x`s luxury watches have only recently become wealthy, and purchase the watches because brand x is highly coveted by those aspiring to wealth, who learn about brand x watches via advertising. therefore, brand x should not implement its new advertising strategy because
(a) most purchasers of brand x’s luxury watches do not read magazines regularly
(b) newly rich consumers will not buy the watches if the watches are not advertised to people who are not yet wealthy who will then hold the watches in high regard
(c) the money saved by implementing the strategy will be outweighed by the reduction in revenue from the less expensive line of watches
(d) consumers who have only recently become wealthy purchase luxury watches in order to impress those who have been wealthy for some time
(e) consumers who are newly wealthy prefer to purchase products that are purchased regularly by the non-wealthy

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving