Your Classmates from the University of Chicago Are Planning to Go

question 3

Multiple Choice

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. If the Chicago-Atlanta round-trip air fare is $350, should you go to Miami?

• A) No, there is a loss of $50.
• B) No, there is a loss of $100.
• C) Yes, there is economic surplus of $50.
• D) Yes, there is economic surplus of $400.

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Definitions:

Strategic Planning

The process of defining a direction for an organization by setting goals, determining actions to achieve those goals, and mobilizing resources to execute the actions.

Global Landscape

Describes the international context or environment in which businesses operate, including economic, political, and cultural dynamics.

External Labour Supply

The availability of potential employees in the job market outside an organization that can be considered for hiring to fulfill HR demand.

Business Context

implies the combination of all internal and external factors that influence the operation and strategy of a company, including market conditions, competition, and regulatory environment.