Table 7-9
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.

-Refer to Table 7-9.You wish to purchase 10 piano lessons for yourself and for your brother,so you take bids from each of the sellers.You will take lessons at the same time,so one teacher cannot provide lessons to both of you.You must pay the same price for both sets of lessons,and you will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons.What bid will you accept?
A) $351
B) $349
C) $201
D) $199

Question

Table 7-9
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.
 
-Refer to Table 7-9.You wish to purchase 10 piano lessons for yourself and for your brother,so you take bids from each of the sellers.You will take lessons at the same time,so one teacher cannot provide lessons to both of you.You must pay the same price for both sets of lessons,and you will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons.What bid will you accept?
A) $351 
B) $349 
C) $201 
D) $199

Quizplus · Accepted Answer

The opportunity cost for the 10th lesson is the highest for the seller with a cost of $349. This means that if they charge any lower, they will not be able to cover their opportunity cost and may not provide all 10 lessons. Therefore, the lowest bid that should be accepted is $349, which is the cost of seller B.

Table 7-9 The Numbers Reveal the Opportunity Costs of Providing 10 Piano