Answer the question on the basis of the following table that shows the total costs and total benefits facing a city of five different potential baseball stadiums of increasing size. All figures are in millions of dollars. Applying the median-voter model and assuming that there are equal numbers of voters supporting each stadium, we would expect

Question

Answer the question on the basis of the following table that shows the total costs and total benefits facing a city of five different potential baseball stadiums of increasing size. All figures are in millions of dollars.  Applying the median-voter model and assuming that there are equal numbers of voters supporting each stadium, we would expect

Quizplus · Accepted Answer

According to the median-voter model, the stadium that will be built is the one that satisfies the preferences of the median voter. Since we are assuming equal numbers of voters supporting each stadium, the median voter is the one in the middle. In this case, the median voter supports stadium C because it has a benefit of $600 million, which is higher than the benefits of stadiums A and B and lower than the benefits of stadiums D and E. However, building stadium C is not the most socially efficient outcome because stadiums D and E have higher benefits and the additional cost of building them is relatively small. Therefore, the best choice is B.

Answer the Question on the Basis of the Following Table