Question

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. An economist would calculate Ziva's total cost of farming to equal O A. $300 B. $250 O C. $130 C.$130 D. $380

Answer 1

The consultant should focus on her high-income consulting work due to the principle of specialization of labor, which suggests maximizing income through skilled work and purchasing vegetables instead.

Step-by-step explanation:

It makes more economic sense for the consultant, who earns $200 per hour, to spend her time at the consulting job rather than growing vegetables because of the principle of specialization of labor. She is very productive in her consulting work, generating significant income in comparison to the value she could create by growing vegetables.

As she is not very good at horticulture, the time spent on farming would result in a much lower economic yield than her professional work. By focusing on consulting, she can maximize her income and then purchase vegetables, better allocating her time and resources towards what she does most effectively.

Answer 2

$380

Step-by-step explanation:

Total cost = Explicit cost + implicit cost

Explicit cost is the actual cost involved in carrying out an activity.

Implicit cost is the opportunity cost. Opportunity cost is the cost of the option forgone when one alternative is chosen over another alternative.

Ziva's explicit cost =$130

Ziva's implicit cost = $25 × 10 = $250

Total cost = $380