Anthony and Susie are the only two residents in a small condominium complex with. They are considering putting a flower garden into a shared courtyard that will make the courtyard more enjoyable. Each resident has the choice of contributing $100 or not. The value to each resident would be $75 for every $100 contributed in total. Assume there are no other benefits or costs to contributing/not-contributing other than the money to contribute and the value of the flower garden (in other words, don’t put any value on people being mad at you).
a. What is the efficient outcome? What creates the most overall benefit to the residents (Hint: You have three choices, both contribute, one contributes, neither contributes)?
b. If both Anthony and Susie contribute to the flower garden what is Susie’s each net benefit (Hint: net benefit = benfit – contribution)?
c. If Anthony contributed, but Susie chose not to contribute, what is Susie’s net benefit?
e. What do economists call this problem? What types of goods does this problem exist for? What can a society do to fix this market failure when it occurs on a much larger scale (more than two residents)?
I do not want the answers I just need an explanation on how to get themjQuery22406309342114272791_1533355714518 what is the process