c. In equation (27.54), we determined the individual equilibrium contribution in the presence of a warm glow

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c. In equation (27.54), we determined the individual equilibrium contribution in the presence of a warm glow effect. Suppose that this represents the equilibrium contribution level for the donors that the social entrepreneur works with, and suppose I 5 1,000, a 5 0.4, and b 5 0.6.

In the absence of any efforts on the part of the entrepreneur, N 5 1,000 and g 5 0.01. How much will the entrepreneur raise without putting in any effort?

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