A builder spends one hour travelling to and from work. He works 40 hours per week for $200. He is given a choice to work 50 hours a week for an extra $75.
What would be the opportunity cost to the builder of working the extra hours?
1 )
the ability to increase his purchasing power
2 )
the additional time travelling to and from work
3 )
the increased hourly earnings of $7.50
the ten hours of leisure time
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