A Manger of a Day-Care Center in Haifa,Israel Has a Clearly

question 80

Essay

A manger of a day-care center in Haifa,Israel has a clearly stated policy that parents are supposed to pick up their children by 4pm (16:00).But often parents are late.Each week,there is an average of eight late pickups.To combat tardiness,the manager of the center instituted a fine of $3 per child per incident.Surprisingly,the number of late pickups more than doubled,to twenty per week.Why?

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Definitions:

Unsold Seats

Refers to seats in venues such as theaters, airplanes, or sports stadiums that remain unoccupied because they were not purchased or reserved.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence ongoing decision-making processes.

Remodeling

The process of improving, updating, or altering the structure or layout of a building to enhance its appearance or functionality.

Marginal Costs

The additional charge associated with making one more unit of a product or service.