Suppose that a small company is thinking of putting plants in their lobby for employees to view and enjoy. Since the plants are to be viewed by employees, the plants are non-excludable (it is infeasible to move a plant each time a specific individual walks by) and non-rival in consumption (if one worker looks at the plant, it does not prevent another from doing so as well). The company employs three workers: Robin, Alex, and Sharon. The company is thinking about buying up to three plants, and wants to know how much workers would enjoy each plant. For Robin, the first plant has a benefit of $47 per day, the second plant has a benefit of $37 per day, and the third plant has a benefit of $13 per day. For Alex, the first plant has a benefit of $41 per day, the second has a benefit of $28 per day, and the third has a benefit of $6 per day. For Sharon, the first plant has a
Suppose that a small company is thinking of putting plants in their lobby for employees to view and enjoy. Since the plants are to be viewed by employees, the plants are non-excludable (it is infeasible to move a plant each time a specific individual walks by) and non-rival in consumption (if one worker looks at the plant, it does not prevent another from doing so as well).
The company employs three workers: Robin, Alex, and Sharon. The company is thinking about buying up to three plants, and wants to know how much workers would enjoy each plant. For Robin, the first plant has a benefit of $47 per day, the second plant has a benefit of $37 per day, and the third plant has a benefit of $13 per day.
For Alex, the first plant has a benefit of $41 per day, the second has a benefit of $28 per day, and the third has a benefit of $6 per day.
For Sharon, the first plant has a benefit of $31 per day, the second has a benefit of $19 per day, and the third has a benefit of $2 per day.
Given that no one else will see the plants, no one else values the plants in the lobby.
What is the marginal social benefit of the first, second and third plant?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
