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 the price is $800 per copy,
A) neither Irene nor Dalia will commission the work.
B) both Irene and Dalia will purchase Jannah's services and Jannah will undertake the job.
C) only Dalia will purchase Jannah's services and Jannah will undertake the job for her.
D) only Dalia will want to purchase Jannah's services but Jannah will not be willing to do the work.

Question

Quizplus · Accepted Answer

Jannah's opportunity cost is $1,200, which is higher than the $800 Dalia is willing to pay, so Jannah will not undertake the job.

Jannah Is a Marketing Consultant