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

question 109

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 $360 and the families have agreed to split the cost of installing the streetlights equally. If the residents choose to install the number of streetlights that will maximize total surplus from the streetlights, how much total surplus will the Greene family receive?

• A)-$80
• B)$320
• C)$360
• D)$480

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Definitions:

Seniority

The concept of recognizing or prioritizing individuals based on their length of service or duration in a position or organization.

Union Contracts

Legally binding agreements between labor unions and employers that outline wages, hours, benefits, working conditions, and other employment terms.

Open Door Policy

A business strategy or principle that allows for transparency and open communication within a company or organization.

Due Process Rights

Legal guarantees that ensure fair treatment through the normal judicial system, especially as a citizen's entitlement.