When Ophelia voluntarily buys a cup of tea from Tim Horton's for $1.25,
A) the seller's opportunity costs must be less than $1.25.
B) the seller's marginal benefits from $1.25 must be less than from the tea.
C) Ophelia's marginal benefits must be less than $1.25.
D) she is not making a smart choice.
E) Ophelia's opportunity costs must be greater than $1.25.

Question

Quizplus · Accepted Answer

The seller's opportunity costs must be less than $1.25 for them to profit from the transaction, as they would not sell the tea if it cost them more to produce and sell it than the price at which they are selling it.

When Ophelia Voluntarily Buys a Cup of Tea from Tim