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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 $600 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Brown's like the town to install?
Standard Line
A reference line used for comparison or measurement purposes, often in the context of visual perception experiments.
Milgram's Study
A psychological experiment conducted in the 1960s by Stanley Milgram to measure the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.
Obeyed Experimenter
Refers to the phenomenon where participants in a study are likely to follow orders from the authority figure conducting the experiment.
Subjects
Individuals or groups who participate in research studies or experiments.
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