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

question 259

Multiple Choice

Table 11-2
Consider a small town with only three families, the Greene family, the Brown family, and the Black 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 $900. How many streetlights should the town install to maximize total surplus from the streetlights?

• A)1 streetlight
• B)2 streetlights
• C)3 streetlights
• D)4 streetlights

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Definitions:

Prejudiced

Holding preconceived opinions or judgments about someone or something without proper knowledge, often based on stereotypes or bias.

Biased Judgments

Assessments or decisions influenced by personal preferences, prejudices, or insufficient information.

Stereotypes

Generally believed, though rigid and simplified, views or concepts of a certain category of people or items.

Prejudices

Preconceived opinions or judgments about people or ideas that are based on limited information or stereotypes rather than direct experience or knowledge.