Paolo and Van are considering contributing toward the creation of a water fountain. Each can choose whether to contribute $400 to the water fountain or to keep that $400 for a weekend getaway. Since a water fountain is a public good, both Paolo and Van will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.80 of benefit. For example, if both Paolo and Van choose to contribute, then a total of $800 would be contributed to the water fountain. So, Paolo and Van would each receive $640 of benefit from the water fountain, and their combined benefit would be $1,280. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Paolo chooses to spend $400 on a weekend getaway, Paolo would get $400 of benefit from the weekend getaway and Van wouldn't receive any benefit from Paolo's choice. If Paolo still spends $400 on a weekend getaway and Van chooses to contribute $400 to the water fountain, Paolo would still receive the $320 of benefit from Van's generosity. In other words, if Paolo decides to keep the $400 for a weekend getaway and Van decides to contribute the $400 to the public project, then Paolo would receive a total benefit of $400+ $320 = $720, Van would receive a total benefit of $320, and their combined benefit would be $1,040. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Paolo and Van as previously described. (Chart in the picture) Of the four cells of the table, which gives the greatest combined benefits to Paolo and Van? A. When neither Paolo nor Van contributes to the water fountain B. When both Paolo and Van contribute to the water fountain C. When Paolo contributes to the water fountain and Van doesn't, or vice versa Now, consider the incentive facing Paolo individually. The following table looks similar to the previous one, but this time, it is partially completed with the Individual benefit data for Paolo. As shown previously, if both Paolo and Van contribute to a public good, Paolo receives a benefit of $640. On the other hand, if Van contributes to the water fountain and Paolo does not, Paolo receives a benefit of $720. Complete the right-hand column of the following table, which shows the individual benefits of Paolo. Hint: You are not required to consider the benefit of Van. (Chart in the 2nd Image) If Van decides to contribute to the water fountain, Paolo would maximize his benefit by choosing ________(to contribute/ not to contribute) to the water fountain. On the other hand, if Van decides not to contribute to the water fountain, Paolo would maximize his benefit by choosing______(to contribute/not to contribute) to the water fountain. These results illustrate _________(the Tragedy of the Commons/the creation of a positive externality/why market are efficient/the free-rider problem)