Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly).
-Refer to the information above.If Bob acts independently,he will have a(n)__________ and total economic surplus to the neighbourhood will be __________.

Question

Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly). 
-Refer to the information above.If Bob acts independently,he will have a(n)__________ and total economic surplus to the neighbourhood will be __________.

Quizplus · Accepted Answer

If Bob acts independently, he will choose not to groom the lawn if it doesn't benefit him directly, resulting in an unkempt lawn. The total economic surplus to the neighborhood will be $0 as no additional value is created.

Bob Lives in a Residential Neighbourhood That Takes Pride on Well-Groomed