In allocating time between competing uses,
A)an individual will try to maximize marginal utility per hour spent on one activity
B)time is considered a free good
C)an individual will try to equate marginal utilities per hour spent on each activity
D)time can be purchased for cash
E)an individual will try to equate the marginal utilities derived from each activity

Question

Quizplus · Accepted Answer

When allocating time between competing uses, an individual will try to equate marginal utilities per hour spent on each activity. This means that the individual will try to allocate their time in a way that gives them equal satisfaction or benefit from each activity per hour spent on it. This is because the opportunity cost of spending time on one activity is the benefit or satisfaction that could have been derived from spending time on another activity. Therefore, the goal is to allocate time in a way that maximizes overall satisfaction or benefit.

In Allocating Time Between Competing Uses