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

question 155

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. 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:

Electronic Mail Communication

The use of email for exchanging messages and information between people using electronic devices.

Instant Messaging

Instant messaging is a form of real-time communication through text or media messages sent over the internet between two or more devices or users.

Features

Characteristics or attributes that distinguish an object, person, or concept from others.

Voice Mail Communication

The use of a digital recording system to store voice messages left by callers.