1) Bob and Mike share an office. Bob is willing to pay $100 to have the office cleaned while Mike is willing to pay $80 to have it cleaned. A clean office is non-rival since Bob's value from a clean office is not affected by Mike's value and vice-versa. The cost of getting the office cleaned is $120. What is the social value of the apartment? Pick the correct answer and reason.

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a $0 since neither Bob nor Mike have a value that exceeds the cost of cleaning the apartment.

b $100 since Bob has the higher value for cleaning.

c $180 since both Bob and Mike can simultaneously enjoy value from a clean office.

d Cannot say since we do nt know the financing mechanism for getting the office cleaned.

2) Bob and Mike share an office. Bob is willing to pay $100 to have the office cleaned while Mike is willing to pay $80 to have it cleaned. A clean office is non-rival since Bob's value from a clean office is not affected by Mike's value and vice-versa. The cost of getting the office cleaned is $120. SUPPOSE BOB OWNS THE OFFICE SPACE AND CAN PREVENT MIKE FROM USING THE OFFICE IF HE DOES NOT PAY FOR CLEANING IT, WHAT TYPE OF GOOD IS A CLEAN OFFICE SPACE?

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a Public Good

b Club Good or Quasi-Public Good

c Common Resource

d Private Good