Homework (Ch 11) 3. Voluntary contributions toward a public good Van and Carlos are considering contributing toward the creation of a botanical garden. Each can choose whether to contribute $300 to the botanicat garden or to keep that $300 for a cell phone. Since a botanical garden is a public good, both Van and Carlos will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.70 of benefit. For example, if both Van and Carlos choose to contribute, then a total of $600 would be contributed to the botanical Garden. So, Van and Carlos would each receive $420 of benefit from the botanical garden, and their combined benefit would be $840. This is shown in the upper left cell of the first table. Since a cell phone is a private good, If Van chooses to spend $300 on a cell phone, Van would get $300 of benefit from the cell phone and Carlos wouldn't receive any benefit from Van's choice. If van still spendu $300 on a cell phone and Carlos chooses to contribute $300 to the botanical garden, Van would still receive the $210 of benefit from Carlos's generosity. In other words, if van decides to keep the $300 for a cell phone and Carlos decides to contribute the $300 to the public project, then Van would receive a total benefit of $300 + $2108510, Carlos would receive total benefit of $210, and their combined benefit would be $720. This is shown in the lower left call of the first table Complete the following table, which shows the combined benefits of Van and Carlos as previously described. Carlos Contributes Doesn't contribute $340 is 5720 S Contributes Van Doesn't contribute of the four cells of the table, which gives the greatest combined benefits to Van and Carlos? when neither Van nor Carlos contributes to the botanical Garden When both Van and Carlos contribute to the botanical garden When Van contributes to the botanical garden and Carlos doesn't, or vice versa Hear Now.consider the Incentive fading van individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for van. As shown previously, if both van and Carlos contribute to public good, van receives a benefit of 420. On the other hand, it Carlos contributes to the botanical garden and van does not, van receives a benefit of $510. Colete the Column of the following table, which show the individual bort of I benefit data for Van. As shown previously, if both Van and Carlos contribute to a public good, Van receives a benefit of $420. On the other hand, if Carlos contributes to the botanical garden and Van does not, Van receives a benefit of $510. Complete the right-hand column of the following table, which shows the individual benefits of van Hint: You are not required to consider the benefit of Carlos. Carlos Contribute Doesn't contributo Contribute 5420 Van Doesn't contribute 5510 to the botanical Garden To If Catto decides to contribute to the botanical garden van would maximize his benefit by choosing On the other hand, If Carlos decider not to contribute to the botanical garden, van would madenize hit benefit by choosing the botanical Garden Hear These results Mustrite Grade It Now Save & Continue Homework (Ch 11) 3. Voluntary contributions toward a public good Van and Carlos are considering contributing toward the creation of a botanical garden. Each can choose whether to contribute $300 to the botanicat garden or to keep that $300 for a cell phone. Since a botanical garden is a public good, both Van and Carlos will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.70 of benefit. For example, if both Van and Carlos choose to contribute, then a total of $600 would be contributed to the botanical Garden. So, Van and Carlos would each receive $420 of benefit from the botanical garden, and their combined benefit would be $840. This is shown in the upper left cell of the first table. Since a cell phone is a private good, If Van chooses to spend $300 on a cell phone, Van would get $300 of benefit from the cell phone and Carlos wouldn't receive any benefit from Van's choice. If van still spendu $300 on a cell phone and Carlos chooses to contribute $300 to the botanical garden, Van would still receive the $210 of benefit from Carlos's generosity. In other words, if van decides to keep the $300 for a cell phone and Carlos decides to contribute the $300 to the public project, then Van would receive a total benefit of $300 + $2108510, Carlos would receive total benefit of $210, and their combined benefit would be $720. This is shown in the lower left call of the first table Complete the following table, which shows the combined benefits of Van and Carlos as previously described. Carlos Contributes Doesn't contribute $340 is 5720 S Contributes Van Doesn't contribute of the four cells of the table, which gives the greatest combined benefits to Van and Carlos? when neither Van nor Carlos contributes to the botanical Garden When both Van and Carlos contribute to the botanical garden When Van contributes to the botanical garden and Carlos doesn't, or vice versa Hear Now.consider the Incentive fading van individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for van. As shown previously, if both van and Carlos contribute to public good, van receives a benefit of 420. On the other hand, it Carlos contributes to the botanical garden and van does not, van receives a benefit of $510. Colete the Column of the following table, which show the individual bort of I benefit data for Van. As shown previously, if both Van and Carlos contribute to a public good, Van receives a benefit of $420. On the other hand, if Carlos contributes to the botanical garden and Van does not, Van receives a benefit of $510. Complete the right-hand column of the following table, which shows the individual benefits of van Hint: You are not required to consider the benefit of Carlos. Carlos Contribute Doesn't contributo Contribute 5420 Van Doesn't contribute 5510 to the botanical Garden To If Catto decides to contribute to the botanical garden van would maximize his benefit by choosing On the other hand, If Carlos decider not to contribute to the botanical garden, van would madenize hit benefit by choosing the botanical Garden Hear These results Mustrite Grade It Now Save & Continue