Since a new suit is a private good, if latasha chooses to spend $300 on a new suit, latasha would get $300 of benefit from the new suit and rosa wouldn't receive any benefit from latasha's choice. if latasha still spends $300 on a new suit and rosa chooses to contribute $300 to the water fountain, latasha would still receive the $270 of benefit from rosa's generosity. in other words, if latasha decides to keep the $300 for a new suit and rosa decides to contribute the $300 to the public project, then latasha would receive a total benefit of

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.