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

question 49

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 $40 per hour and that the residents have agreed to split the cost of cleaning the lake equally. If it was decided that the lake will be cleaned for the number of hours that maximizes total surplus of Widgetapolis, how much individual surplus will James receive in total?

• A)-$20
• B)-$10
• C)$0
• D)$100

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Definitions:

Consumer Taste

Refers to the preferences, likes, and dislikes of customers that influence their buying behavior.

Behavioural Management Approaches

These approaches focus on understanding and influencing employee behavior through various techniques and strategies.

Labour Laws

Regulations that govern the relationship between workers, employers, trade unions, and the government, including aspects such as wages, working hours, and workplace safety.

Quality Management

The act of overseeing all activities and tasks needed to maintain a desired level of excellence in a business’s products, services, and processes.