If an individual can earn $42 per hour and chooses to exercise ten hours a week rather than work,what is the individual's opportunity cost of time per week?

Question

Quizplus · Accepted Answer

The opportunity cost of time is the value of what you have to give up in order to do something else. In this case, the individual is giving up $420 (10 hours x $42/hr) in income by choosing to exercise instead of work. Therefore, the opportunity cost of time per week is $420.

If an Individual Can Earn $42 Per Hour and Chooses