Clint, Lee and Eli are the only three residents of the village of Fantasma. They are considering whether to construct a hiking trail in the mountains surrounding the village. Because congestion on the trail is unlikely, it would be nonrival. Clint values the trail at $300 per month, Lee values the trail at $100 per month, and Eli values the trail at $80 per month. The cost of building and maintaining the trail is $420 per month. Given this information, it is:
A) socially optimal to build the trail.
B) not socially optimal to build the trail.
C) only socially optimal to build the trail if the majority of voters are in favor.
D) not socially optimal to build the trail if it is paid for through taxes.
Correct Answer:
Verified
Q80: According to the textbook, the private provision
Q81: The development of pay-per-view technology:
A)converted a collective
Q82: Assume that each day ten thousand children
Q83: Assume that each day ten thousand children
Q84: If the popular television show The Bachelor
Q86: Lane and Riley are the only two
Q87: Clint, Lee and Eli are the only
Q88: If the popular television show The Bachelor
Q89: If a boxing fight is shown on
Q90: Citizens of Tinytown are considering building a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents