Question

Debbie, a popular wedding photographer, is able to photograph a wedding every Saturday of the year. She charges couples $4,000 for a complete set of photographs that cost her $2,200 to print and develop. Suppose that on one Saturday Debbie photographs her niece's wedding without charge, but her niece insists on paying Debbie $2,200 to cover her printing and developing costs. What is Debbie's economic cost of photographing her niece's wedding?

a. $4,000
b. $2,200
c. $1,800
d. $0

Answer 1

Answer:

c. $1,800

Explanation:

Economic cost calculates what is gained or lost when a particular activity is chosen over another activity.

It incorporates the opportunity cost of taking a particular activity into its calculation of cost.

The economic cost of Debbie taking the picture of her niece is :

$4000 - $2200 = $1800

I hope my answer helps you