Table 11-2 Consider a Small Town with Only Three Families, the Johnson

question 340

Multiple Choice

Table 11-2
Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight.

-Refer to Table 11-2.Suppose the cost to install each streetlight is $180.How many streetlights should the town install to maximize total surplus from the streetlights?

• A) 1 streetlight
• B) 2 streetlights
• C) 3 streetlights
• D) 4 streetlights

---

Definitions:

Wildcat Strike

A labor strike unauthorized by the workers' union leadership, often spontaneous and occurring in direct response to grievances or disputes without formal union approval.

Authorization

The process of giving someone the right or power to do something, often through a formal or legal document.

Union

An organization formed by workers to protect their rights, improve working conditions, and negotiate with employers on wages and other employment terms.

Strike Activity

Actions taken by workers, typically involving stopping work, to protest working conditions or other labor issues.