Question: Consider a small town deciding whether to build a public park. The town council conducts a survey of its 100 residents and asks them how

Consider a small town deciding whether to build a public park. The town council conducts a survey of its 100 residents and asks them how much they would each value the park. The survey results are as follows:

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a. Suppose it costs $35 000 to build the park. Should the town do it?
b. Suppose the park costs only $20 000 to build. Should the town build the park? If so, how should the town pay for building the park?
c. Suppose the town builds the park but charges people $50 for an annual pass. Does this present a problem for efficiency? Explain.

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a The totalvalue placed on the park by the 100 residents is 32 000 If the cost to buildthe park is 3... View full answer

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