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 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?

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 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?

Quizplus · Accepted Answer

The opportunity cost for seller 2 is the lowest at $349, which is below the cost for seller 1 ($351) and the minimum price that seller 3 is willing to sell for ($350). Therefore, the best choice would be to accept seller 2's bid of $349.

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