In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal,
A)one should consume less of time-intensive goods.
B)one should consume more of time-intensive goods.
C)the consumer's equilibrium position is not altered.
D)the marginal utility derived from each product must be multiplied by consumption time in determining equilibrium.

Question

Quizplus · Accepted Answer

When the opportunity cost of time is considered, consumers recognize that time-intensive goods take away from other potential activities. Therefore, they are likely to consume less of these goods to allocate their time more efficiently towards activities with higher perceived value.

In Introducing the Opportunity Cost of Time into the Theory