Frank and Bill are eating lunch together at Chipotle. Frank has a burrito. Frank gets enjoyment from how quickly he can eat his burrito. The faster the better. But, the faster Frank eats his burrito the more sound he makes, which really annoys Bill. If Frank was free to do whatever he wants, without thinking about Bill, then Frank will too fast so that collectively Bill and Frank would be better off if he ate slower. eat his burrito at a speed where the additional benefit from eating faster equals zero. eat his burrito at a speed where his additional benefit is exactly offset by Bill's additional irritation at the sound. eat his burrito too fast unless there is some sort of tax on his eating speed.
Frank and Bill are eating lunch together at Chipotle. Frank has a burrito. Frank gets enjoyment from how quickly he can eat his burrito. The faster the better. But, the faster Frank eats his burrito the more sound he makes, which really annoys Bill. If Frank was free to do whatever he wants, without thinking about Bill, then Frank will too fast so that collectively Bill and Frank would be better off if he ate slower. eat his burrito at a speed where the additional benefit from eating faster equals zero. eat his burrito at a speed where his additional benefit is exactly offset by Bill's additional irritation at the sound. eat his burrito too fast unless there is some sort of tax on his eating speed.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Frank and Bill are eating lunch together at Chipotle. Frank has a burrito. Frank gets enjoyment
from how quickly he can eat his burrito. The faster the better. But, the faster Frank eats his
burrito the more sound he makes, which really annoys Bill. If Frank was free to do whatever he
wants, without thinking about Bill, then Frank will
000
too fast so that collectively Bill and Frank would be better off if he ate slower.
eat his burrito at a speed where the additional benefit from eating faster equals zero.
eat his burrito at a speed where his additional benefit is exactly offset by Bill's additional
irritation at the sound.
eat his burrito too fast unless there is some sort of tax on his eating speed.
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