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

question 174

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. To maximize his own surplus, how many hours of cleaning would John like to have completed?

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

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Definitions:

Public

Pertaining to or accessible by the people as a whole; open and available to everyone.

Wrongs

Actions or behavior that are morally, ethically, or legally unjust, unfair, or harmful.

Hourly Wages

Compensation paid based on the number of hours worked, typically calculated as a rate per hour.

Salaries

Regular payments made by employers to employees, typically on a monthly or biweekly basis, in exchange for the employees' work or services.