Table 11-1 Consider the Town of Anywhere with Only Three Residents, Mary

question 103

Multiple Choice

Table 11-1
Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park.

-Refer to Table 11-1.Suppose the cost to build the park is $33 per acre and that the residents have agreed to split the cost of building the park equally.To maximize his own surplus,how many acres would Bill like Anywhere to build?

• A) 0 acres
• B) 1 acre
• C) 2 acres
• D) 3 acres

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Definitions:

Government Favors

Benefits or advantages granted by the government to specific groups, businesses, or individuals, potentially influencing market outcomes and competitiveness.

Price Floor

A legally established minimum price buyers must pay for a good or resource.

Market for Corn

A specific sector where buyers and sellers engage in the transaction of corn, influenced by factors like weather conditions and demand for biofuels.

Special-Interest Issues

Topics or concerns that are of particular importance to specific groups or organizations.