Scribd Logo
Upload

Welcome to Scribd!

  • 17 views

    Case 1.1: The Hong Kong Hilton Case 1.1: The Hong Kong Hilton

    Uploaded by

    michabigan
    The Hong Kong Hilton hotel was profitable and expected to remain so in the future. However, it was more profitable to demolish the hotel and break the management contract in order to pursue another opportunity with a higher return. All actions imply an opportunity cost, which is the value of the best alternative forgone. While tuition and fees at the University of Pennsylvania are $47,668 per year, this does not represent the true cost of attendance, as it does not include opportunity costs such as foregone wages from alternative activities like work. Similarly, estimates of costs to raise a child provided by the USDA do not represent the full true costs since opportunity costs are not included.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Case 1.1: The Hong Kong Hilton Case 1.1: The Hong Kong Hilton

    Uploaded by

    michabigan
    17 views6 pages
    The Hong Kong Hilton hotel was profitable and expected to remain so in the future. However, it was more profitable to demolish the hotel and break the management contract in order to pursue another opportunity with a higher return. All actions imply an opportunity cost, which is the value of the best alternative forgone. While tuition and fees at the University of Pennsylvania are $47,668 per year, this does not represent the true cost of attendance, as it does not include opportunity costs such as foregone wages from alternative activities like work. Similarly, estimates of costs to raise a child provided by the USDA do not represent the full true costs since opportunity costs are not included.

    Original Description:

    Opportunity Cost Lecture by Rebecca Stein

    Original Title

    Opportunity Cost Lecture

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Hong Kong Hilton hotel was profitable and expected to remain so in the future. However, it was more profitable to demolish the hotel and break the management contract in order to pursue another opportunity with a higher return. All actions imply an opportunity cost, which is the value of the best alternative forgone. While tuition and fees at the University of Pennsylvania are $47,668 per year, this does not represent the true cost of attendance, as it does not include opportunity costs such as foregone wages from alternative activities like work. Similarly, estimates of costs to raise a child provided by the USDA do not represent the full true costs since opportunity costs are not included.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    17 views6 pages

    Case 1.1: The Hong Kong Hilton Case 1.1: The Hong Kong Hilton

    Uploaded by

    michabigan
    The Hong Kong Hilton hotel was profitable and expected to remain so in the future. However, it was more profitable to demolish the hotel and break the management contract in order to pursue another opportunity with a higher return. All actions imply an opportunity cost, which is the value of the best alternative forgone. While tuition and fees at the University of Pennsylvania are $47,668 per year, this does not represent the true cost of attendance, as it does not include opportunity costs such as foregone wages from alternative activities like work. Similarly, estimates of costs to raise a child provided by the USDA do not represent the full true costs since opportunity costs are not included.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 6

    1

    Case 1.1: The Hong Kong Hilton Case 1.1: The Hong Kong Hilton
    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.
    2
    Case 1.1 : The answer
    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
    3
    Case 1.2: How much does it cost to go to
    Penn?
    Case 1.2: How much does it cost to go to
    Penn?
    Case 1.2 : How much does it cost to go to
    Penn?
    Tuition and fees: 47,668
    Penn Tuition and Fees: 2014-2015
    4
    Case 1.2 : Is this the true cost?
    All actions opportunity costs
    Logistics:
    Canvas
    Rebecca Stein
    rstein2@econ.upenn.edu
    Thursdays, 3:30 to 5:30pm in the Collaborative Classroom, 1
    st
    floor of Van Pelt
    Office: 541 McNeil bldg.
    How NOT to study:
    It is not about memorization!
    5
    Case 1.3 : How much does it cost to raise a child?
    USDA Estimates on Expenditures on Children by
    Families
    What is included?
    What is missing?
    Case 1.3 : Is this the true cost?
    All actions opportunity costs
    * Folbre, N. (2008). Valuing Children: Rethinking the Economics of the Family. Cambridge, MA: Harvard University Press.
    6
    Case 1.4: MBA enrollment and economic
    cycles
    What effect will the current recession
    have on MBA applications & enrollment?

    You might also like