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

question 324

Multiple Choice

Table 11-2
Consider a small town with only three families, the Greene family, the Brown family, and the Black 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 $360 and the families have agreed to split the cost of the streetlights equally. If the families vote to determine the number of streetlights to install, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus) , what is the greatest number of streetlights for which the majority of families would vote "yes?"

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

Understand specific legal instruments and practices such as greenmail, golden parachutes, and poison pills in the context of corporate law.

Grasp the implications of landmark legal cases and their effect on contemporary business practices and laws.

Examine the role and powers of regulatory bodies like the SEC in overseeing corporate behavior and enforcing laws.

Insight into the legal issues surrounding securities, antitrust behaviors, and the mechanisms for raising capital in a legal framework.

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Definitions:

Inferior Good

A type of good whose demand decreases as the consumer's income increases, opposite to normal goods.

Complementary Good

A product or service that enhances the use or value of another product or service when used together.

Substitute

A good whose demand increases when the price of another good increases. For example, two brands of cola soft drinks are substitutes.

Complement

A good or service that is used together with another good or service, increasing its demand.