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Finish Help Question 1 (2 points) If one person's use of a good diminishes another person's enjoyment of it, the good is a. excludable. exhaustible.


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Question 1 (2 points)
If one person's use of a good diminishes another person's enjoyment of it, the good is

a. excludable.
b. exhaustible.
c. rival in consumption.
d. normal.

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Question 2 (2 points)
The value and cost of goods are easiest to determine when the goods are

a. natural monopolies.
b. common resources.
c. public goods.
d. private goods.

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Question 3 (2 points)
Table 11-1

Consider the town of Tritown with only three residents, Ed, Jim, and Tony. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident’s willingness to pay for each acre of the park.


Acres Ed Jim Tony
1 $12 $16 $28
2 8 12 24
3 4 8 20
4 2 4 16
5 0 1 12
6 0 0 8
7 0 0 4



Refer to Table 11-1. Suppose the cost to build the park is $30 per acre and that the residents have agreed to split the cost of building the park equally. To maximize his own surplus, how many acres would Jim like Tritown to build the park?

a. 1 acre
b. 2 acres
c. 0 acres
d. 3 acres

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Question 4 (2 points)
Table 11-2

Consider a small town with only three families, the Jones family, the Harris family, and the Wong 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.


Number of
Streetlights The Jones Family The Harris Family The Wong Family
1 $180 $250 $220
2 140 200 210
3 90 140 180
4 30 70 130
5 0 35 60
6 0 0 20



Refer to Table 11-2. Suppose the cost to install each streetlight is $200 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Jones’s like the town to install?

a. 3 streetlights
b. 0 streetlights
c. 2 streetlights
d. 1 streetlight

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