Homework Help is Here – Start Your Trial Now!
Business
Economics
Kyoko and Rina are considering contributing toward the creation of a public park. Each can choose whether to contribute $300 to the public park or to keep that $300 for a weekend getaway. Since a public park is a public good, both Kyoko and Rina will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Kyoko and Rina choose to contribute, then a total of $600 would be contributed to the public park. So, Kyoko and Rina would each receive $540 of benefit from the public park, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Kyoko chooses to spend $300 on a weekend getaway, Kyoko would get $300 of benefit from the weekend getaway and Rina wouldn't receive any benefit from Kyoko's choice. If Kyoko still spends $300 on a weekend getaway and Rina chooses to contribute $300 to the public park, Kyoko would still receive the $270 of benefit from Rina's generosity. In other words, if Kyoko decides to keep the $300 for a weekend getaway and Rina decides to contribute the $300 to the public project, then Kyoko would receive a total benefit of $300 + $270 = $570, Rina would receive a total benefit of $270, and their combined benefit would be $840. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Kyoko and Rina as previously described. Kyoko Contributes Doesn't contribute Rina Contributes Doesn't contribute $1,080 $840 $ Of the four cells of the table, which gives the greatest combined benefits to Kyoko and Rina? O When neither Kyoko nor Rina contributes to the public park O When Kyoko contributes to the public park and Rina doesn't, or vice versa

Kyoko and Rina are considering contributing toward the creation of a public park. Each can choose whether to contribute $300 to the public park or to keep that $300 for a weekend getaway. Since a public park is a public good, both Kyoko and Rina will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Kyoko and Rina choose to contribute, then a total of $600 would be contributed to the public park. So, Kyoko and Rina would each receive $540 of benefit from the public park, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Kyoko chooses to spend $300 on a weekend getaway, Kyoko would get $300 of benefit from the weekend getaway and Rina wouldn't receive any benefit from Kyoko's choice. If Kyoko still spends $300 on a weekend getaway and Rina chooses to contribute $300 to the public park, Kyoko would still receive the $270 of benefit from Rina's generosity. In other words, if Kyoko decides to keep the $300 for a weekend getaway and Rina decides to contribute the $300 to the public project, then Kyoko would receive a total benefit of $300 + $270 = $570, Rina would receive a total benefit of $270, and their combined benefit would be $840. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Kyoko and Rina as previously described. Kyoko Contributes Doesn't contribute Rina Contributes Doesn't contribute $1,080 $840 $ Of the four cells of the table, which gives the greatest combined benefits to Kyoko and Rina? O When neither Kyoko nor Rina contributes to the public park O When Kyoko contributes to the public park and Rina doesn't, or vice versa

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter18: Public Economy
Section: Chapter Questions
Problem 6SCQ: Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first,...
See similar textbooks
icon
Related questions
Question
3. Voluntary contributions toward a public good Kyoko and Rina are considering contributing toward the creation of a public park. Each can choose whether to contribute $300 to the public park or to keep that $300 for a weekend getaway. Since a public park is a public good, both Kyoko and Rina will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Kyoko and Rina choose to contribute, then a total of $600 would be contributed to the public park. So, Kyoko and Rina would each receive $540 of benefit from the public park, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Kyoko chooses to spend $300 on a weekend getaway, Kyoko would get $300 of benefit from the weekend getaway and Rina wouldn't receive any benefit from Kyoko's choice. If Kyoko still spends $300 on a weekend getaway and Rina chooses to contribute $300 to the public park, Kyoko would still receive the $270 of benefit from Rina's generosity. In other words, if Kyoko decides to keep the $300 for a weekend getaway and Rina decides to contribute the $300 to the public project, then Kyoko would receive a total benefit of $300 + $270 $570, Rina would receive a total benefit of $270, and their combined benefit would be $840. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Kyoko and Rina as previously described. Kyoko Contributes Doesn't contribute Rina Contributes Doesn't contribute $1,080 $840 Of the four cells of the table, which gives the greatest combined benefits to Kyoko and Rina? O When neither Kyoko nor Rina contributes to the public park O When Kyoko contributes to the public park and Rina doesn't, or vice versa O When both Kyoko and Rina contribute to the public park
Transcribed Image Text:3. Voluntary contributions toward a public good Kyoko and Rina are considering contributing toward the creation of a public park. Each can choose whether to contribute $300 to the public park or to keep that $300 for a weekend getaway. Since a public park is a public good, both Kyoko and Rina will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Kyoko and Rina choose to contribute, then a total of $600 would be contributed to the public park. So, Kyoko and Rina would each receive $540 of benefit from the public park, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Kyoko chooses to spend $300 on a weekend getaway, Kyoko would get $300 of benefit from the weekend getaway and Rina wouldn't receive any benefit from Kyoko's choice. If Kyoko still spends $300 on a weekend getaway and Rina chooses to contribute $300 to the public park, Kyoko would still receive the $270 of benefit from Rina's generosity. In other words, if Kyoko decides to keep the $300 for a weekend getaway and Rina decides to contribute the $300 to the public project, then Kyoko would receive a total benefit of $300 + $270 $570, Rina would receive a total benefit of $270, and their combined benefit would be $840. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Kyoko and Rina as previously described. Kyoko Contributes Doesn't contribute Rina Contributes Doesn't contribute $1,080 $840 Of the four cells of the table, which gives the greatest combined benefits to Kyoko and Rina? O When neither Kyoko nor Rina contributes to the public park O When Kyoko contributes to the public park and Rina doesn't, or vice versa O When both Kyoko and Rina contribute to the public park
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Willingness to Pay
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS