Scenario 13-6
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.
-Refer to Scenario 13-6. An economist would calculate Ziva's total cost of farming to equal

Question

Quizplus · Accepted Answer

Ziva's total cost of farming would include the cost of seeds ($130) and the opportunity cost of her time spent planting the seeds (10 hours x $25/hour = $250). Therefore, her total cost of farming would be $380.

Scenario 13-6 Ziva Is an Organic Lettuce Farmer, but She Also Spends