Question
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?
$
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