Question

Consider the following setup: your car requires a new set of tires, to get the tires changed you take three hours off work (which reduces your total pay for the day by $60) and take your car to a mechanic who chargers you $240 for the tires and the work. What is the IMPLICIT cost of getting your tires changed?

Answer 1

Answer:

The implicit cost of getting the tires changed is $60.

Explanation:

This implicit cost is the opportunity cost for doing this activity, which is losing 60$ pay in my current work. The economic cost of changing the tyres will be $300, that includes the explicit cost of $240 and the opportunity cost (implicit cost) of $60.