Table 11-5 A Small Island Off the Coast of Cape Cod Contains

question 358

Multiple Choice

Table 11-5
A small island off the coast of Cape Cod contains two restaurants and two retail stores. Tourists need to take a ferry boat to reach the island, but with a recent slowdown in the economy, tourists are less willing to pay for the boat ride to visit the island. The owners of the restaurants and stores on the island - Restaurants 1 and 2, and Stores A and B - think that if tourists could ride the ferry for free, they would be happy to visit the island, eat and shop. The business owners are considering contributing to a pool of money that will be used to pay for roundtrip ferry service each day. The table represents their willingness to pay, that is, the maximum amount that each business owner is willing to contribute, per day, to pay for each ferry trip.
-Refer to Table 11-5. Suppose the cost to run the ferry for each roundtrip is $750 per day and the 4 business owners have agreed to split the costs of the ferry trips equally. Which of the following statements is correct?

• A)The owner of Restaurant 1 would prefer to have 3 ferry trips.
• B)The owner of Restaurant 2 would prefer to have 2 ferry trips.
• C)The owner of Store A would prefer to have 1 ferry trip.
• D)All of the above are correct.

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Definitions:

Rokeach's Categories

a classification system for values developed by Milton Rokeach, dividing them into terminal and instrumental values.

Social Traits

Characteristics or qualities that define how individuals interact socially with others, including personality attributes like extroversion or agreeableness.

Personal Conception Traits

Personal conception traits represent individuals’ major beliefs and personal orientation concerning a range of issues involving social and physical setting.

Emotional Adjustment Traits

Traits related to how much an individual experiences emotional distress or displays unacceptable acts.