Liza needs to buy a textbook for the next economics class. The price at the college bookstore is \(\$ 65 .\) One online site offers it for \(\$ 55\) and another site, for \(\$ 57 .\) All prices include sales tax. The accompanying table indicates the typical shipping and handling charges for the textbook ordered online. a. What is the opportunity cost of buying online instead of at the bookstore? Note that if you buy the book online, you must wait to get it. b. Show the relevant choices for this student. What determines which of these options the student will choose?

Firstly, let's find the total cost of buying from each online site by adding the price of the textbook to the shipping and handling charges. Site 1: Price of textbook = \$55 Shipping and handling charges = x Total cost (Site 1) = \(55 + x\) Site 2: Price of textbook = \$57 Shipping and handling charges = y Total cost (Site 2) = \(57 + y\) The college bookstore cost is \$65. The opportunity cost of buying online is the difference between the college bookstore price and the total cost of buying from each online site. Opportunity cost (Site 1) = \(65 - (55 + x)\) Opportunity cost (Site 2) = \(65 - (57 + y)\) The monetary opportunity cost will be the difference in prices, but there is also the non-monetary opportunity cost of waiting for the book to be delivered when buying online.

The student has three options to buy the textbook: 1. College bookstore: \$65, no waiting time. 2. Online Site 1: Total cost (Site 1) = \(55 + x\), waiting time is present. 3. Online Site 2: Total cost (Site 2) = \(57 + y\), waiting time is present. The decision to choose a particular option will be determined by the monetary costs and the non-monetary opportunity cost of waiting time. The student will weigh these factors and make a choice that best suits their preference and circumstances. Some factors that may influence the student's decision are: 1. The urgency of needing the textbook – If the student needs the book immediately for an assignment or an upcoming exam, they may prioritize the college bookstore. 2. Budget – If the student is on a tight budget, they may prioritize the online options with lower costs. 3. Additional benefits – Some students may be more comfortable receiving the textbook faster through the college bookstore, while others can wait in exchange for lower costs. In conclusion, the opportunity cost of buying online depends on the price difference and waiting time for the textbook delivery. The student will choose an option based on their individual circumstances and considering several decision-making factors such as cost, time, and convenience.