Whether US Airways build the training facility at the location or not.

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Answer 1

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

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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Answer 2

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

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.

Answer 6

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

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.

Answer 7

Chapter 8, Problem 1E

To determine

Whether US Airways build the training facility at the location or not.

Answer 8

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 opportunity cost of the foregone alternative is greater than the cost of building the training center at current location. Thus, the optimal decision would be not to build the center at this location and sell the land to the developer.

The US Airways, hence, can build the training center at some other location.