Scenario 13-3 Tony Is a Wheat Farmer,but He Also Spends Part of Part

question 43

Multiple Choice

Scenario 13-3
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 13-3.What is the total opportunity cost of the day that Farmer Tony incurred for his spring day in the field planting wheat?

• A) $130
• B) $250
• C) $300
• D) $380

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Definitions:

Liability

The state of being responsible or legally obligated to settle a debt or fulfill a contractual agreement; also refers to any form of legal obligation.

Sole Proprietorship

A type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Personal Loan

An unsecured loan provided by a financial institution based on the borrower's creditworthiness, typically used for personal expenses or consolidating debt.