Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that a small company is thinking of putting plants in their lobby for employees to view and enjoy. Since the plants are to be

Suppose that a small company is thinking of putting plants in their lobby for employees to view and enjoy. Since the plants are to be viewed by employees, the plants are non-excludable (it is infeasible to move a plant each time a specific individual walks by) and non-rival in consumption (if one worker looks at the plant, it does not prevent another from doing so as well).

The company employs three workers: Robin, Tyler, and Karl. The company is thinking about buying up to three plants, and wants to know how much workers would enjoy each plant. For Robin, the first plant has a benefit of$17

$17per day, the second plant has a benefit of$13

$13per day, and the third plant has a benefit of$8

$8per day.

For Tyler, the first plant has a benefit of$12

$12per day, the second has a benefit of$10

$10per day, and the third has a benefit of$6

$6per day.

For Karl, the first plant has a benefit of$8

$8per day, the second has a benefit of$5

$5per day, and the third has a benefit of$2

$2per day.

Given that no one else will see the plants, no one else values the plants in the lobby.

What is the marginal social benefit of the first plant?

$

$

What is the marginal social benefit of the second plant?

$

What is the marginal social benefit of the third plant?

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Time Series For Financial Applications

Authors: Massimo Guidolin, Manuela Pedio

1st Edition

0128134100, 9780128134108

More Books

Students also viewed these Economics questions

Question

What are the goals?

Answered: 1 week ago

Question

Are there other relevant characteristics about your key public?

Answered: 1 week ago

Question

What information remains to be obtained?

Answered: 1 week ago