Question
Hans and Theo are planning a heist at the Nakatomi Corporation. The table below shows the marginal private benefit that each of them gets from
Hans and Theo are planning a heist at the Nakatomi Corporation. The table below shows the marginal private benefit that each of them gets from taking planning escape routes as part of the process. Escape plans are both nonrival (each criminal can benefit from the protection of an escape route) and non-excludable (even criminals that don't help come up with plans benefit from them). But there are costs associated with each plan, equal to a constant $C per plan. Assume the goal is to maximize the surplus of these two individuals only, so "socially optimal" means "optimal for this group of people". Use this information for the following two questions.
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