Public Goods and Externalities

Antonio, Vanessa, and Norah all enjoy looking at flowers blooming in gardens in their neighborhood. The neighborhood association is considering planting a flower garden around the sign at the entrance to the neighborhood. Antonio values the garden at $25, Vanessa at $15, and Norah at $30. The flowers and labor for the garden cost $55. What should the neighborhood association do?

The value of public goods?

1. What is the Public Value of the Flower Garden?
2. What is the Public Cost of the Flower Garden?
3. Should the Neighborhood Association build the garden using association funds?Support your responses

Response should have three components:

1. Value

2. Value

3. Response and Analysis