Refer to the information provided.What is the implicit price that Amy pays for the satisfaction derived from playing an hour of tennis?
A)zero
B)$50
C)$75
D)There is not sufficient information to answer this question

Question

Quizplus · Accepted Answer

The implicit price that Amy pays for playing an hour of tennis is the opportunity cost of not using that time to engage in her next best alternative activity. Here, the next best alternative use of her time is working at her job, earning $25 per hour. Therefore, the implicit cost of playing an hour of tennis is $25. However, since she derives a satisfaction of $50 from playing tennis, her net benefit is $50 - $25 = $25. So, the best choice for Amy is to play tennis, as her net benefit is positive.

Refer to the Information Provided