Question

Antonio is training for a triathlon, a timed race that combines swimming, biking, and running. Because his pool sessions are helping him swim more quickly, Antonio plans to reduce by 1 hour per week the time he spends training on the bike and increase by 1 hour the time he spends in the swimming pool; however, his wife says that he should stop doing any biking and running and spend all 20 hours per week in the pool. Which basic principle of individual choice does this scenario illustrate? Resources are scarce. All costs are opportunity costs. Many decisions are made on the margin. People usually exploit opportunities to make themselves better off.

Answer 1

Part of Question completed :

Which basic principle of individual choice does Charles's plan illustrate that his wife's advice does not?

Many decisions are made on the margin.

People usually exploit opportunities to make themselves better off.

Resources are scarce.

All costs are opportunity costs.

Answer:

All costs are opportunity costs

Explanation:

All choices have opportunity costs. If Charles decides to swim, he gives up the time that he could have spent biking or running. The opportunity cost of an hour of swimming is therefore an hour of biking or running, whichever he believes has most value as an alternative which could justify the sacrifice of one hour for swimming alone. There is no information on the value of an extra hour swimming however so we cannot determine whether it is best for Charles to spend time equally on all sports or otherwise.