Answer to Question #213779 in Microeconomics for Haleema

Question

Estimate the monthly cost of your education in first semester in the university keeping both the explicit and implicit costs in view.

Answer 1

In first semester, I am subjected to a tution fee of USD 2500 monthly

Living costs of USD 1000

Room and board USD 400

My explicit costs during my first semester are transportation and books costing me USD 150

For my case, Implicit costs involve sacrificed job earnings which sum to 2000USD

= 2500+1000+400+150+2000

= 6050 USD