hich of the following is an example of an implicit cost associated with an action? - the cost of materials in undertaking a new renovation on your home -the hourly wage you could be earning instead of enjoying your leisure time -the tuition fee that a student pays for a term of college -the time a parent can't spend with their children because they are working there could be more then one correct choice

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Which of the following is an example of an implicit cost associated with an action?

- the cost of materials in undertaking a new renovation on your home
-the hourly wage you could be earning instead of enjoying your leisure time
-the tuition fee that a student pays for a term of college
-the time a parent can't spend with their children because they are working
there could be more then one correct choice
Expert Solution
Step 1: Define explicit cost and implicit cost:

Explicit cost is the actual monetary expenditure incurred by a business or individual in doing an activity.

implicit cost is the opportunity cost associated with an activity. 


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