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choose one and only one answer. 5. Lily and Lucy live alone in the same camp in the jungle and each has a trained dog.

choose one and only one answer.

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5. Lily and Lucy live alone in the same camp in the jungle and each has a trained dog. Their dogs are similar. Each dog could patrol the perimeter of their camp and harvest tropical fruit but not at the same time. Each dog could collect 3 kg of fruit for their owner each hour they are not patrolling or sleeping. Suppose the dogs need to sleep for 10 hours so each only has 14 hours to work. Currently, Lily's dog spends 6 hours patrolling in the morning and collects fruit for 8 hours; Lucy's dog spends 6 hours patrolling in the evening and collects fruit for the other 8 hours. Lily and Lucy are each currently willing to give up one hour of patrol for 2 kg of fruit. Which of the following statements best describe the situation? (a) The current time allocation of patrolling and fruit collecting is efficient. (b) Patrolling is a public good and being provided optimally. (c) Fruit collection is a private good and a socially optimal amount is being pro- duced. (d) A free-rider problem exists, resulting in an under-provision of camp patrolling. (e) None of the above

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