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

question 162

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 $500. How many ferry trips should there be to maximize the total surplus of the four business owners?

• A)1
• B)2
• C)3

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Definitions:

Place Cells

Neurons in the hippocampus that become active when an animal is in or is thinking about a specific location.

Reward

An incentive or positive reinforcement that promotes a desired behavior by providing pleasure or satisfaction.

Place Cells

Place cells are specialized neurons found in the hippocampus of the brain that become active when an animal is in or is thinking about a specific location in its environment, playing key roles in navigation and memory.