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Suppose you run a charity that raises money for a worthy public good. Your donors may be concerned aboot how much of each dollar that
Suppose you run a charity that raises money for a worthy public good. Your donors may be concerned aboot how much of each dollar that is raised is put back itso more fund-raising. a. Suppose the matginal product of a dollar put into fundraising is initially increasiag but eventaally diminishing How much will the last dollar spend on fundrassing taise? b. If everyone considers their own contribotien to this charity as the marginal contrbution, what will be their impeession of how anueh they are really helping the public good? c. Woild you cspect your answer to (b) to make it hander for you to raise moscy for your charity? d. How might your answer to (c) explain why some chanities make a point of informing people that they have placed a cap on their fund raising badget - of that they have placed a cap on how many people will he approached during the fund raining carapaign
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