Miguel, Maria, and Marcos All Would Like a Place to Sit

question 411

Multiple Choice

Miguel, Maria, and Marcos all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Miguel values the benches at $20, Maria at $30, and Marcos at $40. The park benches and labor for installation cost $100. If Miguel, Maria, and Marcos are the only residents who value the benches, what should the neighborhood association do?

• A)Install the park benches because people like places to sit.
• B)Install the park benches because the benefits outweigh the costs.
• C)Do not install the park benches because the costs outweigh the benefits.
• D)Do not install the park benches to prevent the Tragedy of the Commons problem of overuse.

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Definitions:

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