Solved: Betty and anna work at the same office in toronto and they, Microeconomics

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Betty and anna work at the same office in toronto and they

Question: Betty and Anna work at the same office in Toronto and they have to attend a meeting in Montreal. They decide to drive to the out of-town meeting together. Betty is a cigarette smoker and her marginal benefit from smoking a package of cigarettes a day is $40. Cigarettes are $6 a pack. Anna dislikes cigarette smoke, and her marginal benefit from a smoke-free environment is $50 a day. What is the outcome if:

a. Betty drives her car with Anna as a passenger?

b. Anna drives her car with Betty as a passenger?

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Microeconomics: Betty and anna work at the same office in toronto and they

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