Richard Collishaw is a dairy farmer who is also a skilled metal worker. He makes unique garden sculptures that could earn him €40 an hour. One day, he spends 10 hours milking his dairy herd. The cost of operating the machinery used in the milking process is €200. What opportunity cost has he incurred? What cost would his accountant measure? If the milk produced will yield €400 in revenue, does Richard earn an accounting profit? Does he earn an economic profit? Would you advise Richard to continue as a farmer or switch to metal working?