Ask Question
BusinessBusiness
20 May, 11:09

Your classmates from the university of chicago are planning to go to miami for spring break, and you are undecided about whether you should go with them. the round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. all other costs for the vacation are exactly $900. the most you would be willing to pay for the trip is $1400. your only alternative use for your frequent-flyer coupon is for your trip to atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. the chicago-atlanta round-trip airfares are $450. what is the opportunity cost of using the coupon for the miami trip? $100 $450 $500 $550

+1
Answers (1)
  1. 20 May, 11:23
    0
    Since the $450 airfare to Atlanta has been mandated, the student will pay that cost in one manner or the other - either with cash or with the coupon. If the student uses the coupon for the Spring Break trip, then they will have to pay the $450 with cash, and total cash expenditure will be $450. However, if they do not go on the Miami trip, then they will pay for the Atlanta flight with the coupon and there will be zero out-of-pocket cash expenditure. Thus the opportunity cost of using the coupon for the Miami trip is $450.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Your classmates from the university of chicago are planning to go to miami for spring break, and you are undecided about whether you should ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following journal entries correctly records the current month's activity where $60,000 of direct material and $17,000 of indirect materials were used in the production process? A ...
Answers (1)
From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, amount of Federal Reserve assets rose, leading to A) a huge increase in the monetary base. B) a huge expansion of the money supply.
Answers (1)
If patricia were to paint her living room alone, it would take 4 hours. her sister naomi could do the job in 5 hours. how long would it take them working together? if needed, submit your answer as a fraction reduced to lowest terms.
Answers (1)
Which hotel employee is likely to suffer from work-related skin problems? A. a cashier B. a front desk clerk C. a laundry attendant D. a security officer
Answers (1)
Jane has multiple managers at her retail job. It is company policy that customers cannot return items without a receipt, but sometimes managers will allow customers to receive store credit for their returns.
No Answers
New Questions in Business
Sugar is an input used to produce cereal. suppose that the price of sugar decreases. as a result:
Answers (1)
In the bond market, the seller is considered to be A. the lender or the borrower depending upon whether interest rates are rising or falling. B. the lender or the borrower depending upon the use to which the funds are put. C. the borrower. D.
Answers (1)
Which theory holds that police organizations are social institutions that operate in relation to their external social and political environment?
Answers (1)
What is a mineral, as geologists understand the term? how is the definition different from the everyday usage of the word?
Answers (1)
Walmart Approximately what percentage of shrink is caused by theft
Answers (1)
Home » Business » Your classmates from the university of chicago are planning to go to miami for spring break, and you are undecided about whether you should go with them.
Sign Up Forgot Password?