Table 11-6 Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident’s willingness to pay for each hour of cleaning. Hours John James Mary Lydia 1 $30 $50 $40 $10 2 25 40 37 9 3 20 30 34 8 4 15 20 30 7 5 9 10 25 6 6 3 0 15 5 7 0 0 5 4 Refer to Table 11-6. Suppose the cost to clean the lake is $40 per hour and that the residents have agreed to split the cost of cleaning the lake equally. If it was decided that the lake will be cleaned for the number of hours that maximizes total surplus of Widgetapolis, how much individual surplus will Mary receive in total? a. $116 b. $15 c. $25 d. -$10
Table 11-6 Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident’s willingness to pay for each hour of cleaning. Hours John James Mary Lydia 1 $30 $50 $40 $10 2 25 40 37 9 3 20 30 34 8 4 15 20 30 7 5 9 10 25 6 6 3 0 15 5 7 0 0 5 4 Refer to Table 11-6. Suppose the cost to clean the lake is $40 per hour and that the residents have agreed to split the cost of cleaning the lake equally. If it was decided that the lake will be cleaned for the number of hours that maximizes total surplus of Widgetapolis, how much individual surplus will Mary receive in total? a. $116 b. $15 c. $25 d. -$10
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 10SCQ: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the...
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Table 11-6
Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident’s
|
Hours |
John |
James |
Mary |
Lydia |
|
1 |
$30 |
$50 |
$40 |
$10 |
|
2 |
25 |
40 |
37 |
9 |
|
3 |
20 |
30 |
34 |
8 |
|
4 |
15 |
20 |
30 |
7 |
|
5 |
9 |
10 |
25 |
6 |
|
6 |
3 |
0 |
15 |
5 |
|
7 |
0 |
0 |
5 |
4 |
Refer to Table 11-6. Suppose the cost to clean the lake is $40 per hour and that the residents have agreed to split the cost of cleaning the lake equally. If it was decided that the lake will be cleaned for the number of hours that maximizes total surplus of Widgetapolis, how much individual surplus will Mary receive in total?
| a. |
$116
|
|
| b. |
$15
|
|
| c. |
$25
|
|
| d. |
-$10
|
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