Question

One should consume leisure up to the point where the marginal benefit equals the marginal cost, where the marginal cost is the wage rate of labour.

• A. True
• B. False

Answer 1

The correct option is A

True

True. One should consume leisure up to the point where the marginal benefit equals the marginal cost, where the marginal cost is the wage rate of labour. This condition can be simply explained as: Marginal benefit of leisure = Wage.