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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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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