Yakov and Charles are considering contributing toward the creation of a botanical garden. Each can choose whether to contribute $500 to the botanical garden or to keep that $500 for a new suit. Since a botanical garden is a public good, both Yakov and Charles 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 Yakov and Charles choose to contribute, then a total of $1,000 would be contributed to the botanical garden. So, Yakov and Charles would each receive $700 of benefit from the botanical garden, and their combined benefit would be $1,400. This is shown in the upper left cell of the first table. Since a new suit is a private good, if Yakov chooses to spend $500 on a new suit, Yakov would get $500 of benefit from the new suit and Charles wouldn't receive any benefit from Yakov's choice. If Yakov still spends $500 on a new suit and Charles chooses to contribute $500 to the botanical garden, Yakov would still receive the $350 of benefit from Charles's generosity. In other words, if Yakov decides to keep the $500 for a new suit and Charles decides to contribute the $500 to the public project, then Yakov would receive a total benefit of $500 + $350 = $850, Charles would receive a total benefit of $350, and their combined benefit would be $1,200. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Yakov and Charles as previously described. Charles Contributes Doesn't contribute Confributes $1,400 $ Doesn't contribute ~ $1,200 Yakov Of the four cells of the table, which gives the greatest combined benefits to Yakov and Charles? () When Yakov contributes to the botanical garden and Charles doesn't, or vice versa (O When both Yakov and Charles contribute to the botanical garden (O When neither Yakov nor Charles contributes to the botanical garden Now, consider the incentive facing Yakov individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Yakov. As shown previously, if both Yakov and Charles contribute to a public good, Yakov receives a benefit of $700. On the other hand, if Charles contributes to the botanical garden and Yakow does not, Yakov receives a benefit of $850. Complete the right-hand column of the following table, which shows the individual benefits of Yakov. Hint: You are not reguired to consider the benefit of Charles. Charles Contribute Doesn't contribute Contribute $700, - 5 y - Yakov Doesn't contribute ~ $850, - i If Charles decides to contribute to the botanical garden, Yakov would maximize his benefit by choosing W to the botanical garden. On the other hand, if Charles decides not to contribute to the botanical garden, Yakov would maximize his benefit by choosing to the botanical garden. These results illustrate v