Scenario 11-1
Becky is a single mother of two young children who spend their days at a daycare center while Becky goes to work. The daycare center closes at 5:30. If parents do not pick up their children at or before 5:30, the daycare center charges a late fee of $5 per child for every 10 minutes the parent is late.
-Refer to Scenario 11-1. Due to traffic, Becky expects to be 20 minutes late to pick up her children. How much would she be willing to pay for a variable toll road that would get her to the daycare center on time?

Question

Quizplus · Accepted Answer

If Becky is 20 minutes late to pick up her children, she would be charged $10 ($5 per child for every 10 minutes late). Therefore, she would be willing to pay any price less than $20 to avoid the late fee. Choice A and B are incorrect because they are below the potential cost of the late fee. Choice D is incorrect as it does not take into account the potential cost of the late fee.

Scenario 11-1 Becky Is a Single Mother of Two Young Children Who