Suppose 10 people dine at an expensive restaurant and agree to divide the bill equally. What is the additional cost to any individual of ordering an additional appetizer costing $20? Given this dividing rule, what is the NASH Equilibrium ? Explain why this method of dividing the bill may be inefficient . Can you come up with another way of paying the bill that leads to a better outcome? Explain why this will lead to more efficient outcomes?
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