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