Reggie,Rachael,and Rudy all enjoy looking at flowers blooming in gardens in their neighborhood.The neighborhood association is considering planting a flower garden around the sign at the entrance to the neighborhood.Reggie values the garden at $20,Rachael at $35,and Rudy at $50.The flowers and labor for the garden cost $85.What should the neighborhood association do?
A) Plant the garden because people like flowers.
B) Plant the garden because the benefits outweigh the costs.
C) Do not plant the garden because the costs outweigh the benefits.
D) Do not plant the garden in order to prevent the Tragedy of the Commons problem of overuse.

Question

Quizplus · Accepted Answer

The total value assigned by all three individuals is $105 ($20 + $35 + $50). Since the cost of the garden is $85, the benefits outweigh the costs. Therefore, the neighborhood association should plant the garden.

Reggie,Rachael,and Rudy All Enjoy Looking at Flowers Blooming in Gardens