Question

You can spend $150 on either a new Kindle or a new pair of boots. If you choose to buy the new kindle, the economic cost of it is:

Answer 1

$300

Step-by-step explanation:

The economic cost is the sum of implicit cost and explicit cost.The implicit cost is the cost by implication, which is the cost of alternative forgone.

The explicit cost is the actual cost requiring actual cash flow in settling it.

Economic cost=cost of new kindle+cost of alternative forgone(new pair of boots)

Economic cost=$150+$150

The explicit cost is also the cost incurred from accounting point of view