Scenario 12-6
Tony is a wheat farmer,but he also spends part of his day teaching guitar lessons.Due to the popularity of his local country western band,Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business.Farmer Tony charges $25 an hour for his guitar lessons.One spring day,he spends 10 hours in his fields planting $130 worth of seeds on his farm.He expects that the seeds he planted will yield $300 worth of wheat.
-Refer to Scenario 12-6.What is the total opportunity cost of the day that Farmer Tony spent in the field planting wheat?
A) $130
B) $250
C) $300
D) $380

Question

Quizplus · Accepted Answer

The opportunity cost includes the $250 he could have earned from teaching guitar lessons (10 hours x $25/hour) plus the $130 spent on seeds, totaling $380.

Scenario 12-6 Tony Is a Wheat Farmer,but He Also Spends Part of Part