Question

QUESTION 2 Aung, Jeanette and Abdel are neighbours who wish to construct a tennis court on the empty land that all three of their properties enclose. The tennis court will cost approximately $60,000. All three are happy to share this cost to ensure that they can always use the court, even if another is using it. Aung values the court at $26,000; Jeanette values the court at $14,000 Which of the following statements are true? If Abdel values the court at $19,000 the court will be constructed. No individual will pay for the court on their own If Jeanette, Aung and Abdel only wished to play with different people, and not with each other, the court could become rivalrous and may not be constructed. The tennis court is an example of a private good

Answer 1

"Given Total = 60,000 (approximately) Avng = 26,000 Jenette = 14,000 So Abdel = 60000 - (26000 + 14000) = 60000 - (40000) = 20,000 (a) (True) \r\n (b) (False) False because each individual is paying for the court from their own amount. (c) (False) No, false because each individual pays for the court and decided to use the court even if another is using, so it cannot be and can be constructed. (d) (True) Therefore (a), (d) statements are ""True"""