An economist has estimated that the maintenance of a public park costs $25 000 a year and that the public park generates $30 000 a year in revenue for merchants near the park. From society's point of view, the maintenance of this park is:
A) inefficient because the park has no competition
B) potentially efficient because the value of the gains exceeds the value of the losses
C) inefficient because the additional revenues generated by the park are so low
D) inefficient, because everyone in the community pays taxes to support the park, but only the merchants near the park benefit
Correct Answer:
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