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Wolg: work it Out
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Public Goods: Work It Out 1
Suppose there are five people who use a dirt road to go to and from their individual homes. Assume no one owns the road and that it works best when only three cars use it. Each person incurs a different marginal benefit but the same marginal cost of $1 to drive on the road.
The marginal benefits for each person are given in the accompanying table:
\table[[Driver,Marginal Benefit ($),Marginal Cost ($)],[Ed,25,1],[Cathy,20,1],[Aviva,15,1],[John,10,1],[Sue,5,1]]
a. Under these circumstances, how many people will use the road?
1 person will use the road.
2 people will use the road.
Content Wolg: work it Out

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