As you shift your time away from alternative uses in order to work,

Question

Quizplus · Accepted Answer

The concept of opportunity cost states that as you allocate more time towards one activity, the opportunity cost of that time increases (i.e. the cost of foregone opportunities). This means that the marginal cost of your time increases as you shift your time away from alternative uses in order to work, making choice B the correct answer. Choice A is incorrect as stopping attending class may not necessarily be the best alternative to give up. Choice C is incorrect as you usually give up your least valuable alternative first. Choice D is incorrect as the marginal cost of your time increases, not decreases, as you allocate more time towards one activity. Choice E is also incorrect as you usually give up your least favourite alternative first.

As You Shift Your Time Away from Alternative Uses in Order