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Alyssa and Crystal are considering contributing toward the creation of a public park. Each can choose whether to contribute $300 to the public park or

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Alyssa and Crystal are considering contributing toward the creation of a public park. Each can choose whether to contribute $300 to the public park or to keep that $300 for a cell phone. Since a public park is a public good, both Alyssa and Crystal 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 Alyssa and Crystal choose to contribute, then a total of $600 would be contributed to the public park. So, Alyssa and Crystal would each receive $540 of benefit from the public park, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a cell phone is a private good, if Alyssa chooses to spend $300 on a cell phone, Alyssa would get $300 of benefit from the cell phone and Crystal wouldn't receive any benefit from Alyssa's choice. If Alyssa still spends $300 on a cell phone and Crystal chooses to contribute $300 to the public park, Alyssa would still receive the $270 of benefit from Crystal's generosity. In other words, if Alyssa decides to keep the $300 for a cell phone and Crystal decides to contribute the $300 to the public project, then Alyssa would receive a total benefit of $300 + $270 = $570, Crystal 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. Comwlete the following table, which shows the combined benefits of Alyssa and Crystal as previously described. Crystal Contributes Doesn't contribute Contributes $1,080 $ Alyssa Doesn't contribute $840 $

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