Kate and Poornima are considering contributing toward the creation of a building mural. Each can choose whether to contribute $300 to the building mural or to keep that $300 for a pool table. Since a building mural is a public good, both Kate and Poornima 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 Kate and Poornima choose to contribute, then a total of $600 would be contributed to the building mural. So, Kate and Poornima would each receive $540 of benefit from the building mural, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a pool table is a private good, if Kate chooses to spend $300 on a pool table, Kate would get $300 of benefit from the pool table and Poornima wouldn't receive any benefit from Kate's choice. If Kate still spends $300 on a pool table and Poornima chooses to contribute $300 to the building mural, Kate would still receive the $270 of benefit from Poornima's generosity. In other words, if Kate decides to keep the $300 for a pool table and Poornima decides to contribute the $300 to the public project, then Kate would receive a total benefit of $300 + $270 = $570, Poornima 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 Kate and Poornima as previously described. Poornima Contributes Doesn't contribute Contributes $1,080 2$ Kate Doesn't contribute $840 2$ Of the four cells of the table, which gives the greatest combined benefits to Kate and Poornima? When Kate contributes to the building mural and Poornima doesn't, or vice versa When neither Kate nor Poornima contributes to the building mural When both Kate and Poornima contribute to the building mural Now, consider the incentive facing Kate individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Kate. As shown previously, if both Kate and Poornima contribute to a public good, Kate receives a benefit of $540. On the other hand, if Poornima contributes to the building mural and Kate does not, Kate receives a benefit of $570. Complete the right-hand column of the following table, which shows the individual benefits of Kate. Hint: You are not required to consider the benefit of Poornima. Poornima Contribute Doesn't contribute Contribute $540, -- Kate Doesn't contribute $570, -- 24 If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize ing not to contribute to the building mural. to contribute These results illustrate ute not to contribute I to contribute to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. f Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate Contribute Doesn't contribute Contribute $540, -- 2$ Kate Doesn't contri the Tragedy of the Commons why markets are efficient If Poornima decides to vould maximize her benefit by choosing to the building mural. On the other hand, if P the creation of a positive externality e building mural, Kate would maximize her benefit by choosing the free-rider problem These results illustrate Kate and Poornima are considering contributing toward the creation of a building mural. Each can choose whether to contribute $300 to the building mural or to keep that $300 for a pool table. Since a building mural is a public good, both Kate and Poornima 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 Kate and Poornima choose to contribute, then a total of $600 would be contributed to the building mural. So, Kate and Poornima would each receive $540 of benefit from the building mural, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a pool table is a private good, if Kate chooses to spend $300 on a pool table, Kate would get $300 of benefit from the pool table and Poornima wouldn't receive any benefit from Kate's choice. If Kate still spends $300 on a pool table and Poornima chooses to contribute $300 to the building mural, Kate would still receive the $270 of benefit from Poornima's generosity. In other words, if Kate decides to keep the $300 for a pool table and Poornima decides to contribute the $300 to the public project, then Kate would receive a total benefit of $300 + $270 = $570, Poornima 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 Kate and Poornima as previously described. Poornima Contributes Doesn't contribute Contributes $1,080 2$ Kate Doesn't contribute $840 2$ Of the four cells of the table, which gives the greatest combined benefits to Kate and Poornima? When Kate contributes to the building mural and Poornima doesn't, or vice versa When neither Kate nor Poornima contributes to the building mural When both Kate and Poornima contribute to the building mural Now, consider the incentive facing Kate individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Kate. As shown previously, if both Kate and Poornima contribute to a public good, Kate receives a benefit of $540. On the other hand, if Poornima contributes to the building mural and Kate does not, Kate receives a benefit of $570. Complete the right-hand column of the following table, which shows the individual benefits of Kate. Hint: You are not required to consider the benefit of Poornima. Poornima Contribute Doesn't contribute Contribute $540, -- Kate Doesn't contribute $570, -- 24 If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize ing not to contribute to the building mural. to contribute These results illustrate ute not to contribute I to contribute to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. f Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate Contribute Doesn't contribute Contribute $540, -- 2$ Kate Doesn't contri the Tragedy of the Commons why markets are efficient If Poornima decides to vould maximize her benefit by choosing to the building mural. On the other hand, if P the creation of a positive externality e building mural, Kate would maximize her benefit by choosing the free-rider problem These results illustrate Kate and Poornima are considering contributing toward the creation of a building mural. Each can choose whether to contribute $300 to the building mural or to keep that $300 for a pool table. Since a building mural is a public good, both Kate and Poornima 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 Kate and Poornima choose to contribute, then a total of $600 would be contributed to the building mural. So, Kate and Poornima would each receive $540 of benefit from the building mural, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a pool table is a private good, if Kate chooses to spend $300 on a pool table, Kate would get $300 of benefit from the pool table and Poornima wouldn't receive any benefit from Kate's choice. If Kate still spends $300 on a pool table and Poornima chooses to contribute $300 to the building mural, Kate would still receive the $270 of benefit from Poornima's generosity. In other words, if Kate decides to keep the $300 for a pool table and Poornima decides to contribute the $300 to the public project, then Kate would receive a total benefit of $300 + $270 = $570, Poornima 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 Kate and Poornima as previously described. Poornima Contributes Doesn't contribute Contributes $1,080 2$ Kate Doesn't contribute $840 2$ Of the four cells of the table, which gives the greatest combined benefits to Kate and Poornima? When Kate contributes to the building mural and Poornima doesn't, or vice versa When neither Kate nor Poornima contributes to the building mural When both Kate and Poornima contribute to the building mural Now, consider the incentive facing Kate individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Kate. As shown previously, if both Kate and Poornima contribute to a public good, Kate receives a benefit of $540. On the other hand, if Poornima contributes to the building mural and Kate does not, Kate receives a benefit of $570. Complete the right-hand column of the following table, which shows the individual benefits of Kate. Hint: You are not required to consider the benefit of Poornima. Poornima Contribute Doesn't contribute Contribute $540, -- Kate Doesn't contribute $570, -- 24 If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize ing not to contribute to the building mural. to contribute These results illustrate ute not to contribute I to contribute to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. f Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate Contribute Doesn't contribute Contribute $540, -- 2$ Kate Doesn't contri the Tragedy of the Commons why markets are efficient If Poornima decides to vould maximize her benefit by choosing to the building mural. On the other hand, if P the creation of a positive externality e building mural, Kate would maximize her benefit by choosing the free-rider problem These results illustrate Kate and Poornima are considering contributing toward the creation of a building mural. Each can choose whether to contribute $300 to the building mural or to keep that $300 for a pool table. Since a building mural is a public good, both Kate and Poornima 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 Kate and Poornima choose to contribute, then a total of $600 would be contributed to the building mural. So, Kate and Poornima would each receive $540 of benefit from the building mural, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a pool table is a private good, if Kate chooses to spend $300 on a pool table, Kate would get $300 of benefit from the pool table and Poornima wouldn't receive any benefit from Kate's choice. If Kate still spends $300 on a pool table and Poornima chooses to contribute $300 to the building mural, Kate would still receive the $270 of benefit from Poornima's generosity. In other words, if Kate decides to keep the $300 for a pool table and Poornima decides to contribute the $300 to the public project, then Kate would receive a total benefit of $300 + $270 = $570, Poornima 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 Kate and Poornima as previously described. Poornima Contributes Doesn't contribute Contributes $1,080 2$ Kate Doesn't contribute $840 2$ Of the four cells of the table, which gives the greatest combined benefits to Kate and Poornima? When Kate contributes to the building mural and Poornima doesn't, or vice versa When neither Kate nor Poornima contributes to the building mural When both Kate and Poornima contribute to the building mural Now, consider the incentive facing Kate individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Kate. As shown previously, if both Kate and Poornima contribute to a public good, Kate receives a benefit of $540. On the other hand, if Poornima contributes to the building mural and Kate does not, Kate receives a benefit of $570. Complete the right-hand column of the following table, which shows the individual benefits of Kate. Hint: You are not required to consider the benefit of Poornima. Poornima Contribute Doesn't contribute Contribute $540, -- Kate Doesn't contribute $570, -- 24 If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate If Poornima decides to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. On the other hand, if Poornima decides not to contribute to the building mural, Kate would maximize ing not to contribute to the building mural. to contribute These results illustrate ute not to contribute I to contribute to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. f Poornima decides not to contribute to the building mural, Kate would maximize her benefit by choosing to the building mural. These results illustrate Contribute Doesn't contribute Contribute $540, -- 2$ Kate Doesn't contri the Tragedy of the Commons why markets are efficient If Poornima decides to vould maximize her benefit by choosing to the building mural. On the other hand, if P the creation of a positive externality e building mural, Kate would maximize her benefit by choosing the free-rider problem These results illustrate