The small city of Pleasantville is considering building a public swimming pool that costs $1,000. Each resident's marginal benefit of the swimming pool is shown below. It takes a 4/5 majority to pass any tax measure, and all residents must vote. $$\begin{array} { | l | c | }
\hline { \text { Vater } } & \text { Marginal Benefit } \
\hline \text { Kyle } & \$ 420 \
\hline \text { Dylarn } & \$ 360 \
\hline \text { Frar1 } & \$ 350 \
\hline \text { Rorruie } & \$ 190 \
\hline \text { Sarn } & \$ 170 \
\hline
\end{array}$$
Dylan proposes that the city let a private company build the pool and charge residents a one-time fee to use the pool as much as they like. Only residents who pay the fee would be allowed to use the pool. If the private company were allowed to set a single fee, then:

Question

The small city of Pleasantville is considering building a public swimming pool that costs $1,000. Each resident's marginal benefit of the swimming pool is shown below. It takes a 4/5 majority to pass any tax measure, and all residents must vote. $$\begin{array} { | l | c | } 
\hline { \text { Vater } } & \text { Marginal Benefit } \
\hline \text { Kyle } & \$ 420 \
\hline \text { Dylarn } & \$ 360 \
\hline \text { Frar1 } & \$ 350 \
\hline \text { Rorruie } & \$ 190 \
\hline \text { Sarn } & \$ 170 \
\hline
\end{array}$$  
Dylan proposes that the city let a private company build the pool and charge residents a one-time fee to use the pool as much as they like. Only residents who pay the fee would be allowed to use the pool. If the private company were allowed to set a single fee, then:

Quizplus · Accepted Answer

The total marginal benefit ($420 + $360 + $350 + $190 + $170 = $1490) exceeds the cost of $1000, but no single fee can be set that all residents would pay to cover the cost, as the highest individual marginal benefit is $420. Thus, no private company would build the pool.

The Small City of Pleasantville Is Considering Building a Public