(2464) (THAN TRUNG) 1 DE X (1) Messenger X Course: ZBUS1102-Business x MindTap - Cengage Learnin X (2464) YouTube X | Chegg.com X + X -> C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=6042711913003090849811413870&eISBN=9780170445696&id=1478448584&snapshotld=2922723& * (PDF) Calculus: Con... M Gmail YouTube Maps PQ Why Compulsory V... Translate 93 90phut2.live | bit.ly/... SBSC - HNX Bang g. CENGAGE |MINDTAP Q Search this course Minh Tam v Public goods and common resources X 3. Voluntary contributions towards a public good Darnell and Jacques are considering contributing towards the creation of a building mural. Each can choose whether to contribute $300 to the building mural or to keep that $300 for a mobile phone. A-Z Since a building mural is a public good, both Darnell and Jacques will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Darnell and Jacques choose to contribute, then a total of $600 would be contributed to the building mural. So, Darnell and Jacques would each receive $540 of benefit from the building mural, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a mobile phone is a private good, if Darnell chooses to spend $300 on a mobile phone, Darnell would get $300 of benefit from the mobile phone and Jacques wouldn't receive any benefit from Darnell's choice. If Darnell still spends $300 on a mobile phone and Jacques chooses to contribute $300 to the building mural, Darnell would still receive the $270 of benefit from Jacques's generosity. In other words, if Darnell decides to keep the $300 for a mobile phone and Jacques decides to contribute the $300 to the public project, then Darnell would receive a total benefit of $300 + $270 = $570, Jacques would receive a total benefit of $270, and their combined benefit would be $840. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Darnell and Jacques as previously described. A+ Jacques Contributes Doesn't contribute Contributes $1,080 Darnell Doesn't contribute $840 $ O Of the four cells of the table, which gives the greatest combined benefits to Darnell and Jacques? 8 .C 10:38 PM Clear 9/18/2022 3(2464) (THAN TRUNG) 1 DE X (1) Messenger X Course: ZBUS1102-Business x MindTap - Cengage Learnin X (2464) YouTube X | Chegg.com X + X -> C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=6042711913003090849811413870&eISBN=9780170445696&id=1478448584&snapshotld=2922723& * (PDF) Calculus: Con... M Gmail YouTube Maps PQ Why Compulsory V... Translate 93 90phut2.live | bit.ly/... SBSC - HNX Bang g. CENGAGE |MINDTAP Q Search this course Minh Tam v Public goods and common resources X When neither Darnell nor Jacques contributes to the building mural When Darnell contributes to the building mural and Jacques doesn't, or vice versa O When both Darnell and Jacques contribute to the building mural A-Z Now, consider the incentive facing Darnell individually. The following table looks similar to the previous one, but this time, it is partially completed with O the individual benefit data for Darnell. As shown previously, if both Darnell and Jacques contribute to a public good, Darnell receives a benefit of $540. On the other hand, if Jacques contributes to the building mural and Darnell does not, Darnell receives a benefit of $570. Complete the right-hand column of the following table, which shows the individual benefits of Darnell. Hint: You are not required to consider the benefit of Jacques. Jacques Contribute Doesn't contribute Contribute $540, -- $ Darnell Doesn't contribute $570, -- $ A+ If Jacques decides to contribute to the building mural, Darnell would maximise his benefit by choosing to the building mural. On the other hand, if Jacques decides not to contribute to the building mural, Darnell would maximise his benefit by choosing to the building mural. These results illustrate 8'C 10:39 PM Clear 9/18/2022 3