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

question 206

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 $1,000 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 2 ferry trips.
• B)The owner of Restaurant 2 would prefer to have 1 ferry trip.
• C)The owners of Stores A and B would prefer to have 0 trips.
• D)All of the above are correct.

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Definitions:

Solid Mass

A physical form of matter that has a defined shape and volume without fluid properties.

Skin Lesion

Any noticeable change in the skin's condition, including bumps, discoloration, or areas of swelling, which can indicate a wide range of health issues.

Tumor

An abnormal mass of tissue that forms when cells grow and divide more than they should or do not die when they should.

Irregular Ragged

Characterized by a rough or uneven edge or surface, often found in a description of wounds or fabrics.