Table 11-2 Consider a Small Town with Only Three Families, the Johnson

question 68

Multiple Choice

Table 11-2
Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight.

-Refer to Table 11-2.Suppose the cost to install each streetlight is $450 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Walker's like the town to install?

• A) 0 streetlights
• B) 1 streetlight
• C) 2 streetlights
• D) 3 streetlights

---

Definitions:

Communication

The act of transferring information from one place, person or group to another through the use of mutually understood signs, symbols, or language.

Psychological Size

Psychological size describes the perceived influence or impact of an individual's personality or presence on others.

Perceived Importance

The level of significance or value that an individual assigns to a topic, object, or idea, based on personal judgment or perspective.

Democratic

Pertaining to a form or style of leadership based on equality, shared power, group decision making, and the greatest good for the greatest number.