Answer to Question #152379 in Microeconomics for Ali

Question

Suppose that health care training institute charge fee separately for each machine like for treadmill and for cycling machine and rowing machine.
a. What is a cost of going to training institute which is not an opportunity cost?
b. What is an explicit opportunity cost of joining the institute?
c. What is an implicit opportunity cost of joining the institute?

Answer 1

a. A cost of going to training institute which is not an opportunity cost is a cost of fees and other expenses concerned with going to the institute.

b. An explicit opportunity cost of joining the institute is cost that requires a money payment, for example, cost of other activity like swimming in the pool, boxing etc.

c. An implicit opportunity cost of joining the institute is cost that do not require a money payment, for example, time spent in the institute, which could be spent in another place.