You and your roommate have a stack of dirty dishes in the sink. Either of you would wash the dishes if the decision were up to you; however, neither will do it in the expectation (hope!) that the other will deal with the mess. Explain how this example illustrates the problem of public goods and free riding. OA. The dishes illustrate a public good because both you and your roommate have incentive to wait for the other person to wash the dishes. OB. The dishes are a public good but do not represent free riding because there is no cost from failing to wash them. OC. The possibility that the other person might do the dishes makes it seem that an optimal strategy is to simply leave the dishes. O D. Both A and C.

You and your roommate have a stack of dirty dishes in the sink. Either of you would wash the dishes if the decision were up to you; however, neither will do it in the expectation (hope!) that the other will deal with the mess. Explain how this example illustrates the problem of public goods and free riding. OA. The dishes illustrate a public good because both you and your roommate have incentive to wait for the other person to wash the dishes. OB. The dishes are a public good but do not represent free riding because there is no cost from failing to wash them. OC. The possibility that the other person might do the dishes makes it seem that an optimal strategy is to simply leave the dishes. O D. Both A and C.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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