If an individual's opportunity cost of commute is $300 per month and his monthly commuting time is 60 hours,his opportunity cost of time is ________.
A) $5 per hour
B) $10 per hour
C) $30 per hour
D) $60 per hour

Question

Quizplus · Accepted Answer

The opportunity cost of time is calculated by dividing the total opportunity cost by the total time. Here, $300 / 60 hours = $5 per hour.

If an Individual's Opportunity Cost of Commute Is $300 Per