The very small city of Pleasantville is considering building a public swimming pool that costs $1,000.The table shows the five voters in the city and their marginal benefit of a swimming pool.It takes a 4/5 majority to pass any tax measure and all voters must vote. $$\begin{array} { | c | c | }
\hline \text { VOTER } & \text { MARGINAL BENEFIT } \
\hline \text { Kyle } & \$ 420 \
\hline \text { Dylan } & \$ 360 \
\hline \text { Fran } & \$ 350 \
\hline \text { Ronnie } & \$ 190 \
\hline \text { Sam } & \$ 170 \
\hline
\end{array}$$
A tax equal to 68% of each taxpayer's marginal benefits would provide a pool and _______ citizens would use it,while a private firm would provide a pool and _____ citizens would use it.

Question

The very small city of Pleasantville is considering building a public swimming pool that costs $1,000.The table shows the five voters in the city and their marginal benefit of a swimming pool.It takes a 4/5 majority to pass any tax measure and all voters must vote. $$\begin{array} { | c | c | } 
\hline \text { VOTER } & \text { MARGINAL BENEFIT } \
\hline \text { Kyle } & \$ 420 \
\hline \text { Dylan } & \$ 360 \
\hline \text { Fran } & \$ 350 \
\hline \text { Ronnie } & \$ 190 \
\hline \text { Sam } & \$ 170 \
\hline
\end{array}$$
A tax equal to 68% of each taxpayer's marginal benefits would provide a pool and _______ citizens would use it,while a private firm would provide a pool and _____ citizens would use it.

Quizplus · Accepted Answer

A tax equal to 68% of each taxpayer's marginal benefits would cover the $1,000 cost, and all citizens would use it since their marginal benefits exceed their tax contributions. A private firm would only provide the pool if the sum of the marginal benefits of those willing to pay exceeds the cost, which is true for the top three voters.

The Very Small City of Pleasantville Is Considering Building a Public