Three roommates Tinker, Evers, and Chance share an apartment. It is really cold outside and they are

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Three roommates Tinker, Evers, and Chance share an apartment. It is really cold outside and they are considering turning up the thermostat in the apartment up by 1, 2, 3, or 4 degrees. Their individual marginal benefits from making it warmer in the apartment are as follows:
Three roommates Tinker, Evers, and Chance share an apartment. It

They know that each time they raise the temperature by one degree; their heating bill goes up by $8.
a. Find the marginal social benefit from making it 1, 2, 3, or 4 degrees warmer.
b. By how many degrees should they raise the temperature?

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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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