false
Small Joy Sue

Budget: $15

Solved!

5 individuals have a marginal willingness to pay for a public good at $5. The other 5 individuals in a community have a marginal willingness to pay for the good at $3. The cost of provision is $35.00 and requires the provision to be split between the 10 individuals. Is it efficient to provide this good and will the good be provided?

Answer

Small Tutor Aaron Lee

Marginal societal benefit = 5x$5+5x$3=$40. This is greater than $35.00 which mean...


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