Voluntary contributions toward a public good Frances and Latasha are considering contributing toward the creation of a building mural. Each can choose whether to contribute $300 to the building mural or to keep that $300 for a cell phone. Since a building mural is a public good, both Frances and Latasha will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.90 of benefit. For example, if both Frances and Latasha choose to contribute, then a total of $600 would be contributed to the building mural. So, Frances and Latasha would each receive $540 of benefit from the building mural, and their combined benefit would be $1,080. This is shown in the upper left cell of the first table. Since a cell phone is a private good, if Frances chooses to spend $300 on a cell phone, Frances would get $300 of benefit from the cell phone and Latasha wouldn't receive any benefit from Frances's choice. If Frances still spends $300 on a cell phone and Latasha chooses to contribute $300 to the building mural, Frances would still receive the $270 of benefit from Latasha's generosity. In other words, if Frances decides to keep the $300 for a cell phone and Latasha decides to contribute the $300 to the public project, then Frances would receive a total benefit of $300+$270=$570 , Latasha would receive a total benefit of $270, and their combined benefit would be $840. This is shown in the lower left cell of the first table. Complete the following table, which shows the combined benefits of Frances and Latasha as previously described. Latasha Contributes Doesn't contribute Frances Contributes $1,080 Doesn't contribute $840 Of the four cells of the table, which gives the greatest combined benefits to Frances and Latasha? When both Frances and Latasha contribute to the building mural When Frances contributes to the building mural and Latasha doesn't, or vice versa When neither Frances nor Latasha contributes to the building mural Now, consider the incentive facing Frances individually. The following table looks similar to the previous one, but this time, it is partially completed with the individual benefit data for Frances. As shown previously, if both Frances and Latasha contribute to a public good, Frances receives a benefit of $540. On the other hand, if Latasha contributes to the building mural and Frances does not, Frances receives a benefit of $570. Complete the right-hand column of the following table, which shows the individual benefits of Frances. Hint: You are not required to consider the benefit of Latasha. Latasha Contribute Doesn't contribute Frances Contribute $540, -- , -- Doesn't contribute $570, -- , -- If Latasha decides to contribute to the building mural, Frances would maximize her benefit by choosing to the building mural. On the other hand, if Latasha decides not to contribute to the building mural, Frances would maximize her benefit by choosing to the building mural. These results illustrate.