Caroline and Frances are considering contributing toward the creation of a water fountain. Each can choose whether to contribute $400 to the water fountain or to keep that $400 for 2 weekend getaway. Since a water fountain is a public good, both Caroline and Frances 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 Caroline and Frances choose to contribute, then a total of $800 would be contributed to the water fountain. So, Caroline and Frances would each receive $720 of benefit from the water fountain, and their combined benefit would be $1,440. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Caroline chooses to spend $400 on a weekend getaway, Caroline would get $400 of benefit from the weekend getaway and Frances wouldn't receive any benefit from Caroline's choice. If Caroline still spends $400 on a weekend getaway and Frances chooses to contribute $400 to the water fountain, Caroline would still receive the $360 of benefit from Frances's generosity. In other words, if Caroline decides to keep the $400 for a weekend getaway and Frances decides to contribute the $400 to the public project, then Caroline would receive a total benefit of $400 + 5360 = $760, Frances would receive a total benefit of $360, and their combined benefit would be $1,120. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Caroline and Frances as previously described. Frances Contributes Doesn't contribute Contributes $1,440 Caroline Doesn't contribute $1,120 Of the four cells of the table, which gives the greatest combined benefits to Caroline and Frances? () When neither Caroline nor Frances contributes to the water fountain () When both Caroline and Frances contribute to the water fountain () When Caroline contributes to the water fountain and Frances doesn't, or vice versa Now, consider the incentive facing Caroline individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Caroline. As shown previously, if both Caroline and Frances contribute to a public good, Caroline receives a benefit of $720. On the other hand, if Frances contributes to the water fountain and Caroline does not, Caroline receives a benefit of $760. Complete the right-hand cofumn of the following table, which shows the individual benefits of Caroline. Hint: You are not required to consider the benefit of Frances. Frances Contribute Doesn't contribute Confribute $720, - Caroline Doesn't contribute $760, - If Frances decides to contribute to the water fountain, Caroline would maximize her benefit by choosing W to the water fountain. On the other hand, if Frances decides not to contribute to the water fountain, Caroline would maximize her benefit by choosing W to the water fountain. These results illustrate v