Phillip, a high school student, makes $7.50 an hour. He takes two hours off from
ID: 1195968 • Letter: P
Question
Phillip, a high school student, makes $7.50 an hour. He takes two hours off from work (without pay) to walk to the doctor’s office for a football physical. The doctor charges him $45.00. What is the total “economic” cost of Phillip’s visit to the doctor? Phillip, a high school student, makes $7.50 an hour. He takes two hours off from work (without pay) to walk to the doctor’s office for a football physical. The doctor charges him $45.00. What is the total “economic” cost of Phillip’s visit to the doctor? Phillip, a high school student, makes $7.50 an hour. He takes two hours off from work (without pay) to walk to the doctor’s office for a football physical. The doctor charges him $45.00. What is the total “economic” cost of Phillip’s visit to the doctor?Explanation / Answer
Total economic cost is the cost incurred by Phillip as well as the opportunity cost that he incurred by not working for those 2 hours i.e. $15. So, total economic cost = 7.5*2 + 45
$60.