please fill in the blanks and contribution Due Monday 11.27.17 at 02:00 Attempts
ID: 1114142 • Letter: P
Question
please fill in the blanks and contribution
Due Monday 11.27.17 at 02:00 Attempts: Keep the Highest: S 2. Voluntary contributions toward a public good Dina and Juanita are considering contributing toward the creation of a public par k. Each can choose whether to contribute $300 to the public park or to keep that $300 for a cell phane. Since a public park is a public good, both Dina and Juanita contributions made by th either one of them contributes will bring each of them s0.90 of benefit. For example, if both Dina and Juanita choose to centribute, then a totali of $600 would be contributed to the public park. So, Dina end Juanita would each receive $540 of benefit from the public park, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table ita will benefit from any contributions made by the other parson. Specifically, every doilar that Since a cell phone is a private good, if Dina chooses to spend $300 on a cell phone, Dina would get $300 of benefit from the call phone and Juanita wouldn't receive any benefit from Dine's choice. If Dina still spends $300 on a cell phone and Juanita chooses to contribute $300 to the public perk na would still receive the $270 of benefit from Juanita's generosity. In other words, If Dina decides to keep the s300 for a cell phone and Juanita decides to contribute the S300 to the public project, then Dina would receive a total benefit of $300+S270-S570, Juanita would receive a total benefit of s270, and their combined benefit would be $340. This is shown in the lowar laft cell of the first table. Complete the folowing table, which shows the combined benefits of Dina and Juanits as previously described. Juanita Contributes Doesn't contributeExplanation / Answer
Ans: when both Dina and Juanita contribute to the public park.
Answer to blank 1: Don't contribute
Answer to blank 2: Don't contribute
Answer to blank 3: Free rider problem
Juanita Contribute Don't contribute Dina Contribute 1080 840 Don't contribute 840 600Related Questions
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