Glen is considering whether to paint his house and if so,what colour to choose.He settles on three options: leave it "as is",paint it brown,or paint it purple.Glen's neighbours are able to easily see his house.The following table shows the monetary values of utility for Glen and his neighbours under the three possibilities.
-Refer to the information above.Suppose that an additional rule is adopted: maximize total economic surplus but no outcome with a negative value for either Glenn or his neighbours can be chosen.The outcome now is that Glen's house will
A) not be painted.
B) be painted purple.
C) be painted brown.
D) either remain as is or be painted brown.
E) be of an indeterminate colour.

Question

Glen is considering whether to paint his house and if so,what colour to choose.He settles on three options: leave it "as is",paint it brown,or paint it purple.Glen's neighbours are able to easily see his house.The following table shows the monetary values of utility for Glen and his neighbours under the three possibilities. 
-Refer to the information above.Suppose that an additional rule is adopted: maximize total economic surplus but no outcome with a negative value for either Glenn or his neighbours can be chosen.The outcome now is that Glen's house will
A) not be painted. 
B) be painted purple. 
C) be painted brown. 
D) either remain as is or be painted brown. 
E) be of an indeterminate colour.

Quizplus · Accepted Answer

Maximizing total economic surplus while ensuring no negative value for either party means choosing the option that provides the highest net benefit without causing a loss to Glenn or his neighbors. Painting the house brown likely meets these criteria.

Glen Is Considering Whether to Paint His House and If