Which situation would lead to an increase in opportunity cost?

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Choosing to forgo leisure time for additional work leads to an increase in opportunity cost because it requires sacrificing one of the most valuable resources you have: your time. Opportunity cost refers to the value of the next best alternative that is given up when making a decision. In this case, by choosing to work more, you are giving up the enjoyment or relaxation that could have been gained from leisure time.

Leisure time often has intrinsic value, providing not just relaxation but also social interactions and personal fulfillment, which you cannot gain while working. Therefore, the greater the sacrifice of leisure time, the higher the opportunity cost, as it reflects not only lost wage potential but also the benefits associated with leisure. This concept emphasizes the important economic principle that every choice has trade-offs, and in this scenario, working more creates a higher opportunity cost due to the valuable leisure time that is sacrificed.

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