Question

Suppose the cost of cleaning the lake is $40 per hour, and that the residents have agreed to split the cost of cleaning the lake equally. If the residents vote to determine the number of hours spent cleaning the lake, basing their decision solely on what maximizes their own surplus, what is the most number of hours for which all four residents would vote "yes?"

Answer 1

Yes I would answer that as yes

Answer 2

3 hours

Explanation:

The number of hours being likely to be put cleaning the lake will be about three hours. This is because the cleaning of the lake is an after-activity, that is one that is conducted after their normal daily routines.

Hence the maximum input hours will be three hours for the households.