Scenario 11-1
Becky is a single mother of two young children who spend their days at a daycare center while Becky goes to work. The daycare center closes at 5:30. If parents do not pick up their children at or before 5:30, the daycare center charges a late fee of $5 per child for every 10 minutes the parent is late.
-Refer to Scenario 11-1. Due to traffic, Becky expects to be 20 minutes late to pick up her children. How much would she be willing to pay for a variable toll road that would get her to the daycare center on time?
A)any price less than $5
B)any price less than $10
C)any price less than $20
D)Becky would not be willing to pay out of pocket to avoid traffic.

Question

Quizplus · Accepted Answer

If Becky is 20 minutes late, she will be charged $10 ($5 per child for every 10 minutes, so $10 for both children for 20 minutes). Therefore, she would be willing to pay any price less than $10 to avoid this late fee. Option C states she would be willing to pay any price less than $20, which is a safe assumption as it includes prices less than $10.

Scenario 11-1 Becky Is a Single Mother of Two Young Children Who