In Chapter 1 of the course text, you read about three important decision pitfalls in economic decisions. One of these is the pitfall of ignoring implicit costs.
Assume that you are considering a 7-night vacation to Fort Walton Beach, Florida, in March. You estimate the total cost of the trip to Fort Walton Beach at $1,250, including discounted airfare. However, a resort at Myrtle Beach, South Carolina, is offering 3 free nights with a 7-night stay. The advertised value of this special 3-night free offer is $397. In addition, you must use a $200 flight coupon that you received from an airline last December to compensate you for a 6-hour flight delay. After applying the $200 flight coupon and the $397 for the 3 free nights, the total out-of-pocket cost for the trip to Myrtle Beach is $1,100.
Submit by Day 7 a 300- to 700-word paper which addresses the following:
Based on the total explicit and implicit costs, should you take the trip to Fort Walton Beach or to Myrtle Beach? Explain your answer and support it with total cost estimates (explicit plus implicit) for each trip option.
Assignments must be in APA style and format. Information on APA style is available at the Walden Writing Center.
In addition to fully answering the assignment’s questions, each assignment will be evaluated for clarity of writing, critical analysis of the issues, proper use of references to support the positions taken, and adherence to APA standards. Also see this assignment’s rubric, provided in the Course Information area.