A company has 10 employees who are paid for a 40 hour work week. For the upcoming week, scheduled production requires 37 hours of work per employee. Which of the following statements is true?

• A. The extra 3 hours are unused time with no cost
• B. The wage rate will increase in the next week
• C. The opportunity cost of the extra 3 hours depends upon the best alternative use of the employee's time
• D. The firm should lay off workers

Answer: (C)