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Wolg: work it Out
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Public Goods: Work It Out
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 $ to drive on the road.
The marginal benefits for each person are given in the accompanying table:
tableDriverMarginal Benefit $Marginal Cost $EdCathyAvivaJohnSue
a Under these circumstances, how many people will use the road?
person will use the road.
people will use the road.
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