A person will choose to work another hour if the benefit of another hour of work is:
A) greater than the opportunity cost.
B) exactly equal to the opportunity cost.
C) less than the opportunity cost.
D) exactly equal to the average total cost to the firm.

Question

Quizplus · Accepted Answer

A person will choose to work another hour if the benefit of another hour of work is greater than the opportunity cost. This is because the benefit of working an extra hour is measured by the additional income earned, while the opportunity cost is measured by the value of the best alternative forgone. Therefore, if the benefits of working an extra hour (additional income) are greater than the opportunity cost (value of the best alternative forgone), then the person will choose to work another hour.

A Person Will Choose to Work Another Hour If the Benefit