Question
One hundred of the voters in a town are willing to pay $100 each to support a public green space, which will cost $10,000 to
One hundred of the voters in a town are willing to pay $100 each to support a public green space, which will cost $10,000 to build and maintain. One hundred and fifty voters in the same town do not value the public green space.
a. What is the social marginal benefit of the public green space?
b. What is the socially optimal outcome?
What is the outcome according to the median voter model?
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International Business
Authors: John Daniels, Lee Radebaugh, Daniel Sullivan
16th edition
134200055, 978-0134201542, 013420154X, 978-0134200057
