Suppose that Rosa is considering migration to another country. To move, she will have to spend $4,000 on transportation and $6,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $400,000. She expects to earn a stream of future earnings of $750,000 in another country. Based on this information, Rosa's explicit cost of migrating is

Question

Quizplus · Accepted Answer

The explicit cost of migrating includes the tangible, out-of-pocket expenses such as transportation and processing fees, which total $4,000 + $6,000 = $10,000.

Suppose That Rosa Is Considering Migration to Another Country