Question

The company received $8,100 cash in advance for sustainability consulting work. As of December 31, what amount of the sustainability consulting work had been performed?

1) One-third of the work
2) Two-thirds of the work
3) The full amount of the work
4) Cannot be determined

Answer 1

A consultant earning $200 per hour should buy vegetables instead of growing them because her time is better spent working, given her high opportunity cost and the increased income from her consulting job.

Step-by-step explanation:

It makes more economic sense for a consultant who earns $200 per hour to spend her time working and purchase her vegetables rather than attempting to grow them herself. The principle behind this decision is the concept of opportunity cost, which suggests that the time the consultant would spend on growing vegetables could be better utilized by engaging in her professional work, where she earns a substantial hourly wage.

By shopping for vegetables, she is able to utilize her time more efficiently and leverage her professional skillset to maximize her income. Consequently, despite her preference for home-grown produce, buying vegetables is the more financially prudent choice.