Question

A consultant works for $200 per hour. She likes to grow vegetables, but is not very good at it. Why does it make more economic sense for her to spend her time at the consulting job and shop for her vegetables?

Answer 1

Answer:

It is provided that the consultant works for $200 per hour.

Since, for the exchange of her services as a consultant she gets to be paid through $200 monetary benefit, such benefit will not arise in case of growing of vegetables.

Currently she grows vegetables only for her needs, thus, she do not sell them commercially, and also as provided she is not good ion growing vegetables,

The chances of earnings through sale of vegetables is less, as the quality and quantity both served will be low.

Also for exchange of money $200 she can buy all the resources she needs to live, but as she will not be able to earn this much from sale of vegetables, she will not find the economic equilibrium from such sale.

Therefore, she should continue to work as a consultant.