Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $400 each to Abby, Ben, and Clara. In a majority vote, this proposal will most likely be:
A) Accepted; the public good is produced even though it is economically inefficient
B) Defeated; the public good is not produced even though it would have been efficient to do so
C) Accepted; the public good is produced which is economically efficient
D) Defeated; the public good is not produced, which is the proper outcome
Correct Answer:
Verified
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