The three residents of Smallville are considering a fireworks display. Clark values this public good at $80;

Question:

The three residents of Smallville are considering a fireworks display. Clark values this public good at $80; Lana at $50; and Pete (who dislikes fireworks) at −$30. Fireworks cost the town $120, or $40 per person. The efficient outcome is for the town

a. to provide the public good because the median person values it more than its cost per person.

b. to provide the public good because a majority of the residents value it more than its cost per person.

c. to provide the public good because the total value of a majority exceeds the total cost.

d. not to provide the public good because the total value of all residents is less than the total cost

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: