Scenario 13-1

Blake decides to spend a spring day in the field planting wheat with some help from some workers he hires. Blake earns total revenue of $870. Blake incurs the following costs: $50 for renting a tractor, $150 for fertilizer, and $100 for wages paid to workers. Blake used $5000 that he could have invested in his savings account at 10 percent interest to organize his spring day planting wheat. In addition, Blake gave up $130 he could have earned at his other job in deciding to plant wheat.

Refer to Scenario 13-1. What is the total opportunity cost Blake incurred for his spring day in the field planting wheat?

a. $130

b. $500

c. $600

d. $630