While Eating Dinner One Evening,you Receive a Phone Call from a Telemarketing

question 46

Multiple Choice

While eating dinner one evening,you receive a phone call from a telemarketing firm.The firm's representative informs you that your name is one of only five names drawn in a recent lottery.Each of the five people will receive a prize.In order to claim your prize,however,you must visit Summer Resorts,Inc.the following Friday (with no commitment to purchase anything) ,take a 90 minute tour of their facilities,and,at that time,your prize will be awarded.In order to visit Summer Resorts,Inc.the next Friday,you would have to miss 8 hours of work ($15 per hour) ,pay for the gas to drive there and back home ($20) ,and buy lunch ($10) .Because you won't go to work that day you won't have to pay the $3 for gas to drive to and from work,nor pay to park,for which you have a monthly pass that costs $50.Using cost-benefit analysis,you determine that it is rational for you to visit Summer Resorts,Inc.if the prize has a minimum value to you of

• A) $177.
• B) $180.
• C) $183.
• D) $147.
• E) $98.

---

Definitions:

Nonbillable Hours

Time spent by professionals, like lawyers or consultants, on activities that cannot be directly charged to a client.

Maximize

To increase something to its greatest potential or highest possible level.

Regulatory Authority

A governmental agency or body responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity.

State Supreme Court

The highest court in a U.S. state, with the ultimate judicial authority to interpret state laws and constitution.