Table 7-13
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.

-Refer to Table 7-13. You wish to purchase 10 piano lessons, so you take bids from each of the sellers. 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) $251
C) $249
D) $199

Question

Table 7-13
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.
 
-Refer to Table 7-13. You wish to purchase 10 piano lessons, so you take bids from each of the sellers. 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) $251 
C) $249 
D) $199

Quizplus · Accepted Answer

According to the table, the seller's cost for providing 10 piano lessons ranges from $199 to $351. You want to make sure the chosen seller can provide all 10 lessons, so you should not accept a bid below their cost. The lowest cost among the sellers is $249, which is the bid you should accept. Choosing a bid lower than the seller's cost may result in the seller not being able to provide all 10 lessons due to lack of profit. Choosing a bid higher than the seller's cost would mean paying more than necessary. Therefore, the best choice is to accept the bid of $249.

Table 7-13 The Numbers Reveal the Opportunity Costs of Providing 10 Piano