1. Dr. Falk is a dentist who performs two basic procedures: fillingcavities and whitening teeth....

Question

1. Dr. Falk is a dentist who performs two basic procedures: filling
cavities and whitening teeth. Falk charges $50 per cavity filled, a
process that takes him 15 minutes per tooth and requires no
help or materials. For tooth whitening, a process requiring
30 minutes, Falk charges $150 net of materials. Again, no help is
required. Is anything puzzling about Falk’s pricing pattern?
Explain your answer.
2. In 2010, the Texas Lottery Commission began selling $5 Dallas
Cowboys scratch-off game tickets. Prizes for winning tickets
included cash, team merchandise, and Cowboys’ season tickets
for the 2010 season at their new $1.15 billion stadium. Suppose
you received one of these Cowboys’ scratch-off games as a birthday
present and you won free season tickets for the 2010 season.
Would there be a cost to you to attend the Cowboys’ games during
the 2010 season?

Robert · Accepted Answer

1. Dr. Falk is a dentist who performs two basic procedures: filling cavities and whitening teeth. 
Falk charges $50 per cavity filled, a process that takes him 15 minutes per tooth and requires no 
help or materials. For tooth whitening, a process requiring 30 minutes, Falk charges $150 net of 
materials. Again, no help is required. Is anything puzzling about Falk’s pricing pattern? Explain 
your answer. 
Answer: 
Dr. Falk takes 15 minutes to fill cavity in a tooth and 30 minutes for whitening the teeth. This 
means that the opportunity cost of filling cavity in a tooth is 0.50.   
However,

1. Dr. Falk is a dentist who performs two basic procedures: filling cavities and whitening teeth. Falk charges $50 per cavity filled, a process that takes him 15 minutes per tooth and requires no help...

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