Table 11-2
Consider the City of Widgetapolis with Only Four

question 85

True/False

Table 11-2
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.
​
$$\begin{array} { l l l l l } \hline \text { Hours } & \text { John } & \text { James } & \text { Mary } & \text { Lydia } \\\hline 1 & \$ 30 & \$ 50 & \$ 40 & \$ 10 \\2 & 25 & 40 & 37 & 9 \\3 & 20 & 30 & 34 & 8 \\4 & 15 & 20 & 30 & 7 \\5 & 9 & 10 & 25 & 6 \\6 & 3 & 0 & 15 & 5 \\7 & 0 & 0 & 5 & 4 \\\hline\end{array}$$ ​
-Refer to Table 11-2. Suppose the cost to clean the lake is $12 per hour and that the residents have agreed to split the cost of cleaning the lake equally. The number of cleaning hours that maximizes total surplus of Widgetapolis is 7 hours.

---

Definitions:

Accounting Procedures

Systematic methods or processes followed in the preparation, maintenance, and auditing of financial records and statements.