Lecture 1 - [email protected] 541 McNeil Thursdays...

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1 Case 1.1: The Hong Kong Hilton Why was it profitable to demolish a profitable Hong Kong hotel? The hotel was profitable. It was expected to be profitable in the future. Breaking the management contract was costly. CHAPTER 1: Avoid Pitfalls! Opportunity Cost = value of the best foregone alternative to any decision All actions imply an opportunity costs Opportunity costs = true economic costs
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2 Case 1.2 : How much does it cost to go to Penn? Tuition and fees: 53,250 Undergraduate expense budget Case 1.2 : Is this the true cost? All actions opportunity costs
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3 Logistics: https://courseweb.library.upenn.edu/ Rebecca Stein
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Unformatted text preview: [email protected] 541 McNeil, Thursdays, 1:30 to 4pm. Case 1.3: MBA enrollment and economic cycles What effect will the current recession have on MBA applications & enrollment? 4 Case 1.4: Having kids How much does it cost to raise a child? Case 1.4 : A few facts 2000 estimate: $165,630 from birth to age 18. 5 Case 1.4 : Is this the true cost? All actions ⇒ opportunity costs Opportunity cost must include opportunity cost of time for parents. Estimate of direct expenses of first year: $8,740. Estimate of time cost of first year: $23,780. Time accounts for 73% of true cost!...
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This note was uploaded on 11/04/2009 for the course MUSIC 021 taught by Professor Gray during the Spring '09 term at UPenn.

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Lecture 1 - [email protected] 541 McNeil Thursdays...

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