Answer to Question #152435 in Microeconomics for Xoxox

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. the tuition cost

b. the explicit opportunity cost is the use of the machines

c. The implicit opportunity cost is the payment for a chance to utilize the resources.