A public good that would benefit Karen,Tammy,and Max has a one-time installation cost of $900.These three voters must approve any tax plan by a simple majority and all three will cast a vote.
-Refer to the information above.Since the government does not know,and cannot discover,the voters' reservation prices,it proposes a head tax of $300 per voter.The result of the referendum is that

Question

A public good that would benefit Karen,Tammy,and Max has a one-time installation cost of $900.These three voters must approve any tax plan by a simple majority and all three will cast a vote. 
-Refer to the information above.Since the government does not know,and cannot discover,the voters' reservation prices,it proposes a head tax of $300 per voter.The result of the referendum is that

Quizplus · Accepted Answer

Since the government does not know the reservation prices of the voters, proposing a head tax of $300 per voter is the most reasonable and fair option. However, since all three voters must approve any tax plan by a simple majority, if Karen and Tammy vote against the tax, it will not be accepted even if Max votes for it. Therefore, the result of the referendum is that Max votes for the tax but Karen and Tammy vote against it, and the tax is not accepted. Thus, the public good cannot be provided.

A Public Good That Would Benefit Karen,Tammy,and Max Has a One-Time