If workers are optimizing their total benefit,they will consume leisure until their ________.

Question

Quizplus · Accepted Answer

When workers are optimizing their total benefit, they will consume leisure until the marginal benefit of leisure (the additional satisfaction gained per unit of leisure) equals their wage. This is because they are willing to forego a certain amount of leisure in exchange for a certain amount of income, and they will continue to do so until the marginal benefit of leisure is equal to the amount they are earning per hour worked. Therefore, the correct choice is D – marginal benefit of leisure equals their wage.

If Workers Are Optimizing Their Total Benefit,they Will Consume Leisure