Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter 8, Problem 1E
To determine
Whether US Airways build the training facility at the location or not.
Expert Solution & Answer
Explanation of Solution
The cost of next best alternative available to US Airways that is, selling the land to developer is $2.5 million.
Further, the airlines do not meet the acceptance criteria of cost not more than $850,000.
The
The US Airways, hence, can build the training center at some other location.
Economics Concept Introduction
Introduction:
Opportunity cost is the next best alternative foregone.
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Chapter 8 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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