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

Question

Quizplus · Accepted Answer

The opportunity cost of Joss's time is $1,200, which is higher than what either Iris or Daphne is willing to pay individually. Therefore, Joss will not undertake the project as it would result in a loss.

Joss Is a Marketing Consultant