Suppose there are ten people playing cards in a room.One of them wants to smoke a cigar;nine of them dislike the smell of cigar smoke.The smoker values the privilege of smoking at $5,and each of the other nine occupants of the room would be willing to pay fifty cents for clean air in the room.The rules governing use of the room state that smoking is not allowed unless everyone agrees to allow smoking.
Refer to the information given above.What is the total economic surplus if the cigar smoker refrains from smoking?
A) -$4.50
B) -$.50
C) $4.50
D) $9.50
Correct Answer:
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