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Additional Application Do Implicit Costs Affect Decision-Making in the Real World? for World

question 8

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Additional Application
Do implicit costs affect decision-making in the real world? For the first time nationwide the number of golf courses closing in a year will exceed the number that is opening.This can be explained by a number of reasons.One is the cost of insuring golf courses,which has increased in many areas.Also the number of rounds played has decreased 4% in the last six years.But another explanation is the opportunity cost of owning a golf course.As property prices have increased,the land that golf courses are on is worth a great deal more as housing developments.The owners must continually decide whether the return from operating a golf course is greater than,or at least equal to,the return the owners could get if the land was developed for another use.Furthermore,one explanation for the decline in rounds being played is attributed to the time it takes to play golf.As the opportunity cost of a golfer's time increases,the fewer hours he/she is willing to spend on the golf course.Implicit costs are real and play a role in decision-making of both supply and demand.
"Blues on the Green: Why Golf is in Decline," The Economist,October 14,2006,p.70.
-Which of the following would be an implicit cost of playing a round of golf?

Definitions:

Major Organic Product

The primary substance formed in the highest yield during a chemical reaction involving organic compounds.

Reaction

A process through which one or more substances are changed into one or more different substances through the rearrangement, removal, replacement, or addition of atoms.

Major Organic Product

The primary substance formed in the highest yield during an organic chemical reaction.

Reaction

A process in which substances, the reactants, are transformed into different substances, the products.