It is the one of the chapter of ECON4006 Labour Economics , Supply of Labor Supply. We first think of how the workers (people) demand for leisure. It depends on
- Preferences
- Income Level
- Price of Leisure / opportunity cost of leisure (wage rate)
Then, how to define the opportunity cost of leisure?
It is usually the wage rate of that person. For he can use the time to work and earn money if he doesn’t play.