Question: 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
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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?
1 degree 2 degrees 3 degrees 4 degrees Tinker S5 S4 S3 S2 EverS S4 S3 S2 S1 Chance S3 S2 $1 SO
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