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Question 2: Public Goods Four roommates share an apartment. They all benefit from the number of hours per month (H) spent cleaning the kitchen and
Question 2: Public Goods Four roommates share an apartment. They all benefit from the number of hours per month (H) spent cleaning the kitchen and common space in the apartment, where one unit of H means that one person spent one hour cleaning the apartment. (a) Explain why cleaning the apartment can be thought of as a public good. (b) Suppose each roommate values hours of cleaning at P = 6 H where H is the number of hours of cleaning per month. In addition, suppose that each roommate values their free-time at $12 per hour. What would economics predict would happen? Briefly explain your answer. (c) What is the welfare-maximizing number of hours of cleaning per month? (d) How much greater would welfare be in part (c) than part (b)
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