In models of labor supply,the opportunity cost of spending an hour enjoying leisure activities is

Question

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The opportunity cost of spending an hour enjoying leisure activities in models of labor supply is the hourly wage that could have been earned during that hour. This is because the individual could have decided to work during that hour and earn wages instead of engaging in leisure activities. Therefore, the opportunity cost is the value of the next best alternative, which is the hourly wage that could have been earned.

In Models of Labor Supply,the Opportunity Cost of Spending an Hour