o When Deborah contributes to the building mural and Janet doesn't, or vice versaO When both Deborah and Janet contribute to the building muralO When neither Deborah nor Janet contributes to the building muralNow, consider the incentive facing Deborah individually. The following table looks similar to the previous one, but this time, it is partially completedwith the individual benefit data for Deborah. As shown previously, if both Deborah and Janet contribute to a public good, Deborah receives a benefitof $320, On the other hand, if Janet contributes to the building mural and Deborah does not, Deborah receives a benefit of $360,Complete the right-hand column of the following table, which shows the individual benefits of Deborah.Hint: You are not required to consider the benefit of Janet.JanetContributeDoesn't contributeContribute$320, -DeborahDoesn't contribute$३60, --If Janet decides to contribute to the building mural, Deborah would maximize her benefit by choosingOn the other hand, if Janet decides not to contribute to the building mural, Deborah would maximize her benefit by choosingv to the building mural.v to the building mural.These results illustratetvMacBook AiDIIF2F3F4F5F6F7%23%243.4.WRT.YLLI Deborah and Janet are considering contributing toward the creation of a building mural. Each can choose whether to contribute $200 to the buildingmural or to keep that $200 for a new sult.Since a bullding mural is a public good, both Deborah and Janet will benefit from any contributions made by the other person. Specifically, every dollarthat either one of them contributes will bring each of them $0.80 of benefit. For example, if both Deborah and Janet choose to contribute, then a totalof $400 would be contributed to the building mural. So, Deborah and Janet would each receive $320 of benefit from the building mural, and theircombined benefit would be $640. This is shown in the upper left cell of the first table.Since a new suit is a private good, if Deborah chooses to spend $200 on a new suit, Deborah would get $200 of benefit from the new suit and Janetwouldn't recelve any benefit from Deborah's choice. If Deborah still spends $200 on a new suit and Janet chooses to contribute $200 to the buildingmural, Deborah would still receive the $160 of benefit from Janet's generosity. In other words, if Deborah decides to keep the $200 for a new suit andJanet decides to contribute the $200 to the public project, then Deborah would receive a total benefit of $200 + $160 = $360, Janet would receive atotal benefit of $160, and their combined benefit would be $520. This is shown in the lower left cell of the first table.TimeComplete the following table, which shows the combined benefits of Deborah and Janet as previously described.JanetContributes Doesn't contributeContributes$640DeborahDoesn't contribute$520 sOf the four cells of the table, which gives the greatest combined benefits to Deborah and Janet?When Deborah contributes to the building mural and Janet doesn't, or vice versaO When both Deborah and Janet contribute to the building muralO When neither Deborah nor Janet contributes to the building muralNow, consider the incentive facing Deborah individually. The following table looks similar to the previous one, but this time, it is partially completedwith the individual benefit data for Deborah. As shown previously, if both Deborah and Janet contribute to a public good, Deborah receives a benefitof $320. On the other hand, if Janet contributes to the building mural and Deborah does not, Deborah receives a benefit of $360.Complete the right-band.column of the following table which shows the individual benefits of DeborahstvMacBook AirDIIF7F4F5FBF3%23%24&3.6.YW00

Question

Accepted Answer

Public good is not excludable and non-rivalry.