Howie just bought a new digital camera to replace his old one.His old one works perfectly fine and would sell on Craigslist for $100.The fact that Howie would not pay $100 for it,yet continues to let it sit in his closet unused is explained by:

Question

Quizplus · Accepted Answer

The implicit cost of ownership refers to the cost of owning an item that is not being used, such as the opportunity cost of the space it takes up in the closet or the loss of potential income from selling it. In this case, Howie is choosing to keep his old camera unused, despite the fact that he could sell it for $100, because the implicit cost of ownership is greater than the explicit cost of selling it.

Howie Just Bought a New Digital Camera to Replace His