Table 11-6 Consider the City of Widgetapolis with Only Four Residents, John

question 85

Multiple Choice

Table 11-6
Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident's willingness to pay for each hour of cleaning. ​
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-Refer to Table 11-6. Suppose the cost to clean the lake is $100 per hour. How many hours should be spent cleaning the lake to maximize total surplus for the residents in Widgetapolis?

• A)2 hours
• B)3 hours
• C)4 hours
• D)5 hours

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Definitions:

Dual Facilities

refers to a strategy where a company operates two or more facilities, typically manufacturing plants or distribution centers, in different locations to better serve various markets or to enhance production capabilities.

Stable Output

The consistent production level of goods or services over a period, unaffected by fluctuations in demand.

Varying Volume

Fluctuations in the quantity of products or services produced or sold over a specific period, often influenced by market demand, seasonality, or production capacity.

Pricing Decisions

The process of determining the price at which a company will sell its products or services.