Jannah is a marketing consultant. Irene and Dalia are potential customers interested in commissioning Jannah to undertake a market survey and compile the findings in a report. Irene is willing to pay $500 for the service while Dalia is willing to pay $800. Suppose that the opportunity cost of Jannah's time is $1,200. Assume that Irene and Dalia do not know each other. If Jannah charges the same price per copy to both Irene and Dalia,
A) both Irene and Dalia will commission the job and the report will be written.
B) only Dalia will commission the job and the report will be written.
C) no conclusion can be drawn without information on the price.
D) the report will not get written.

Question

Quizplus · Accepted Answer

Since Jannah's opportunity cost is $1,200, and neither Irene ($500) nor Dalia ($800) is willing to pay that amount or more, Jannah would not undertake the job as it does not cover her opportunity cost.

Jannah Is a Marketing Consultant