Taylor lives in a residential neighborhood that prides itself on well-groomed lawns. Taylor’s neighbors find that the collective marginal benefit of someone else’s well-groomed lawn is $10. Taylor, however, dislikes yard work and receives zero net benefits from an unkempt lawn a net benefit of -$1 for a well-groomed lawn; the cost of maintaining the lawn is a dollar more than Taylor’s benefit of having a well-groomed lawn.
|Net value to Taylor||0||-1|
|Net value to Taylor’s neighbors||0||+10|
Taylor’s neighbors would be willing to pay Taylor _____ to keep a well-groomed lawn.
b) more than $1 but less than $5
c) more than $10
d) no more than $10