Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed. If the tax cost of this proposed project is $600 per person, a majority vote will

Question

Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed.  If the tax cost of this proposed project is $600 per person, a majority vote will

Quizplus · Accepted Answer

The marginal cost per person for this project is $600, which is greater than the marginal benefit for member 1 and member 2. Therefore, they will vote against the project, resulting in a defeat. Since the project is overallocated to member 3, who will receive a marginal benefit of only $400, while paying the same tax cost of $600, it is better to allocate resources elsewhere.

Answer the Question on the Basis of This Table Showing