Question: Three roommateslong dash Tinker , Evers , and Chancelong dash share an apartment. It is really cold outside and they are considering turning up the
Three
roommateslong dashTinker
Evers and
Chancelong dashshare
an apartment. It is really cold outside and they are considering turning up the thermostat in the apartment by or degrees. Their individual marginal benefits from making it warmer in the apartment are as follows:
Tinker
Evers
Chance
degree
$
$
$
degrees
$
$
$
degrees
$
$
$
degrees
$
$
$
Part
They know that each time they raise the temperature in the apartment by degree, their heating bill goes up by
$
Part
To maximize social benefit, they should raise the temperature by
degree
degrees
degrees
degrees
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