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 $1200.Assume that Iris and Daphne do not know each other.If Joss charges the same price per copy 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

Since the opportunity cost of Joss's time is $1200, and neither Iris ($500) nor Daphne ($800) is willing to pay that amount or more, Joss would not undertake the work as it does not meet his minimum compensation requirement.

Joss Is a Marketing Consultant