Denise Is Thinking About Setting Up a Butterfly Garden in Her

question 124

Multiple Choice

Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude that:

• A) butterflies are a negative externality for Billy and Sammy.
• B) Denise will set up the butterfly garden without any help from her free-rider neighbors.
• C) if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built.
• D) if Billy refuses to contribute to the butterfly garden, Denise will not have one.
• E) if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up.

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Definitions:

KBr

Potassium bromide, a chemical compound consisting of potassium (K) and bromine (Br), used mainly in photography and in medication.

AgBr

Silver bromide, a chemical compound used in photographic films and papers.

Lead(II) Nitrate

A white to colorless crystalline chemical compound used in making other lead compounds and some pyrotechnics.

Sodium Chloride

A white crystalline compound known as table salt, widely used in food seasoning and preservation; its chemical formula is NaCl.