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Consider a public good experiment where there are 4 people in a group. Each group member has 20 tokens to keep in a private a
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Answer #1

The lowest possible earning for a member would be in the case where individual member invests all his tokens while other members keep their tokens in the private account.

When tokens are invested, each member get $0.10 per token.

So, if individual invests all his tokens while others do not then,

Income of individual = $0.10 * 20 = $2

Thus,

The lowest possible earnings a member can make is $2.

Hence, the correct answer is the option (D).

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