A town is considering investing money into making a public show in a park that can be enjoyed by families during a weekend. The show requires an investment of $950. There are 150 families, each of which is willing to pay up to $6 for the show. There are also 50 additional families each willing to pay $5 for the show. If the money is invested, there is a large capacity so that any number of families can attend, and their enjoyment will not depend on the number of attendees. (a) According to the utilitarian criterion, should the money be invested

Question

Eliana Robertson

Business

13 October, 13:49

A town is considering investing money into making a public show in a park that can be enjoyed by families during a weekend. The show requires an investment of $950. There are 150 families, each of which is willing to pay up to $6 for the show. There are also 50 additional families each willing to pay $5 for the show. If the money is invested, there is a large capacity so that any number of families can attend, and their enjoyment will not depend on the number of attendees. (a) According to the utilitarian criterion, should the money be invested

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Hailey Pugh · Answer 1

If 150 are willing to pay $6, amount accumulated = 150 multiply with 6 = $900

If 50 family pays & $5 each, amount accumulated = 50 multiply with 5 = $250

Total = $900 + $250 = $1150.

Excess amount = $1150 - $950 = $200

(i) Yes, the money should be invested because after collection from families and investing, there is an excess fund of $200.