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A group of 5 friends goes out to eat. Before they order food, they all agree that they will split the bill evenly (each pay
A group of 5 friends goes out to eat. Before they order food, they all agree that they will split the bill evenly (each pay 1/5 of the total). Which statement best describes the likely allocation from this payment plan? O Under the split the bill plan, each agent is imposing a positive externality on the others, thus we should expect them to consume too little food relative to the efficient allocation. O Under the split the bill plan, each agent is imposing a negative externality on the others, thus we should expect them to consume too much food, relative to the efficient allocation.. O Since each agent is paying the same amount, we should expect them to consume exactly the efficient amount of food
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