100 inhabitants of an urban district are worried about their security. 

1. Is the surveillance service a public good for inhabitants? Why?

2. If one inhabitant decided to pay for the surveillance service on her own, how many guards would she hire?

3. If 50 inhabitants made an agreement in which all pay one share of the cost of surveillance, how many guards would they hire?

 

N. Guards 24h 0 1 2 Total cost (in $) 0 150 300 Individual benefit for each inhabitant ($) 0 10 16