Scenario 13-3
Diamond is an organic brocolli farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Diamond helps people organize their houses. Due to the popularity of her home-organization services, Farmer Diamond has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Diamond charges $45 an hour for her home-organization services. One spring day, Diamond spends 8 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of brocolli.
-Refer to Scenario 13-3. An economist would calculate Diamond's total cost for the day of farming to equal

Question

Quizplus · Accepted Answer

The total cost includes the explicit cost of $130 for seeds and the opportunity cost of not working as a consultant for 8 hours ($45/hour * 8 hours = $360). Adding these together gives $130 + $360 = $490.

Scenario 13-3 Diamond Is an Organic Brocolli Farmer, but She Also Spends