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

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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.
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 $450 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Walker's like the town to install? A)  0 streetlights B)  1 streetlight C)  2 streetlights D)  3 streetlights
-Refer to Table 11-2.Suppose the cost to install each streetlight is $450 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Walker's like the town to install?

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Definitions:

Conflict

A process that occurs when individuals or groups perceive that they have incompatible interests, goals, or values.

Robbers Cave Experiment

The Robbers Cave Experiment was a psychological study on intergroup conflict and cooperation, finding that competitive tasks increase hostility between groups while cooperative tasks reduce it.

Cognitive Bases

Fundamental mental processes and structures that underlie thinking, perception, memory, and decision-making in individuals.

Realistic Group Conflict Theory

A theory that explains how intergroup conflict can arise from competition between groups for limited resources.

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