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,so you take bids from each of the sellers.The bids are required to be rounded to the nearest dollar.You will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons.Your parents have given you $450 to spend on piano lessons.You believe that the sellers with higher opportunity costs offer higher quality lessons.You want the highest quality lessons that you can afford,but you can spend any remaining money on dinner with friends.From whom will you take lessons,and how much money will you spend?
A) Peter; $450
B) Cindy; $450
C) Greg; $401
D) Cindy; $401

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,so you take bids from each of the sellers.The bids are required to be rounded to the nearest dollar.You will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons.Your parents have given you $450 to spend on piano lessons.You believe that the sellers with higher opportunity costs offer higher quality lessons.You want the highest quality lessons that you can afford,but you can spend any remaining money on dinner with friends.From whom will you take lessons,and how much money will you spend?
A) Peter; $450 
B) Cindy; $450 
C) Greg; $401 
D) Cindy; $401

Quizplus · Accepted Answer

Greg's bid is $401, which is within your budget of $450, and it is the highest bid you can afford without going below the seller's cost, ensuring quality.

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