100 inhabitants of a urban district are worried about their security.
1. Is the surveillance service a public good for inhabitants? Why?
2. If one inhabitant decided to the pay the surveillance service by her own, how many guards would she hire?
3. If 50 inhabitants made an agreement in which all pay one share of the cost of surveillance, how many guards would they hire?
N. Guards 24h Total cost (in$) Individual benefir for each inhabitant ($)
0 0 0
1 150 10
2 300 16