View the step-by-step solution to:

Economic Decisions

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.

Sign up to view the entire interaction

Top Answer

Kindly find the answer in...

View the full answer
Economic Decisions.docx
Running head: ECONOMIC DECISIONS Economic Decisions
Student’s Name
University Affiliation 1 ECONOMIC DECISIONS 2
Economic Decisions Implicit costs are also known as imputed, implied or notional...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question