Question

Voluntary contributions toward a public good Brian and Edison are considering contributing toward the creation of a botanical garden. Each can choose whether to contribute $300 to the botanical garden or to keep that $300 for a weekend getaway, Since a botanical Garden is a public good, both Brian and Edison will benefit from any contributions made by the other person. Specifically, every daltar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Brian and Edison choose to contribute, then a total of $600 would be contributed to the botanical garden. So, Brian and Edison would each receive $540 of benefit from the botanical garden and their combined benefit would be $1,050. This is shown in the upper left coll of the first table I Since a weekend getaway is a private good, Brian chooses to spend $300 on a weekend getaway, Brian would get 5300 of benefit from the weekend Detaway and Edison wouldn't receive any benefit from Brian's choice for an still spends $300 on a weekend getaway and Edison chooses to contribute 3300 to the botanical Garden, Brian would still receive the 5270 of benefit from Edisons generosky. In other words, it brian decides to keep the $300 for a weekend getaway and Edison decides to contribute the $100 to the public protect the artan would recelve a total benefit of $500 $270 $570, Edison would receive a total benefit of $270, and their combined benefit would be $040. This is shown in the lower lett celler the first table Complete the following table, which shows the combined benefits of Brian and Edison as previously described.

Edison
Contributes Doesnt contribute
Bran Contributes $1.080
Doesn't contribute $840 5
of the four cells of the table, which gives the greatest combined benefits to Brian and Edison?

A. When neither Brian nor Edison contributes to the botanical garden
B. When Bran contributes to the botanical garden and Edison doesn't or vice versa
C. When both Brian and Edison contribute to the botanical Garden

Answer 1

The greatest combined benefits for Brian and Edison occur when both contribute to the botanical garden.

Step-by-step explanation:

The table represents the combined benefits of Brian and Edison based on their choices to contribute or not contribute to the botanical garden. To find the greatest combined benefits, we need to determine the value for each cell in the table.

1. If neither Brian nor Edison contributes to the botanical garden, the combined benefits would be $0.
2. If Brian contributes and Edison doesn't or vice versa, the combined benefits would be $840.
3. If both Brian and Edison contribute to the botanical garden, the combined benefits would be $1,080.

Based on these values, it can be concluded that the greatest combined benefits occur when both Brian and Edison contribute to the botanical garden. Therefore, the correct choice is option C: When both Brian and Edison contribute to the botanical garden.

Answer 2

The greatest combined benefit for Brian and Edison occurs when both voluntarily contribute to the botanical garden, resulting in a total combined benefit of $1,080.

Step-by-step explanation:

Based on the information provided, we are given a classic scenario of a public goods dilemma, which is similar to a Prisoner's Dilemma. If both Brian and Edison contribute $300 each, the combined benefit from the botanical garden would be $540 each for a total of $1,080, providing the greatest combined benefit. The complete table of combined benefits shows all the possible outcomes:

• Brian and Edison both contribute: $1,080 ($540 each)
• Brian contributes, Edison does not: $870 (Brian gets $540 from the garden and $300 from keeping his money, while Edison gets $270 benefit from Brian's contribution to the garden)
• Edison contributes, Brian does not: $870 (Edison gets $540 from the garden and $300 from keeping his money, while Brian gets $270 benefit from Edison's contribution to the garden)
• Neither contributes: $600 (Both keep their $300)

Answering the question, the option that gives the greatest combined benefits for Brian and Edison is when both voluntarily contribute to the creation of the botanical garden (C).