Question

Debbie, a popular wedding photographer, is able to photograph a wedding every Saturday of the year. She charges couples $4,000 for a complete set of photographs that cost her $2,200 to print and develop. Suppose that on one Saturday Debbie photographs her niece's wedding without charge, but her niece insists on paying Debbie $2,200 to cover her printing and developing costs. What is Debbie's economic cost of photographing her niece's wedding

Answer 1

The economic cost for Debbie is 6,200 after considering the implicit cost.

Step-by-step explanation:

The economic cost for Debbie's will be the explicit cost and opportunity cost of the best rejected opportunity.

Explicit cost: 2,200 print and develop

Opportunity Cost: 4,000 normal wedding revenue

Total Cost: 6,200