When the benefit of another hour of work is greater than the opportunity cost,we would expect the worker to:
A)work another hour.
B)work an hour less.
C)work exactly that amount.
D)Cannot be determined without more information.

Question

Quizplus · Accepted Answer

The concept of opportunity cost refers to the value of the best alternative forgone when choosing an option. Therefore, when the benefit of another hour of work is greater than the opportunity cost, it means that the worker will gain more by working that extra hour than by doing anything else with the time (i.e., the value of the next best alternative is lower than the benefits of working). In this scenario, it makes sense for the worker to choose to work another hour to maximize their gains.

When the Benefit of Another Hour of Work Is Greater