Public goods, voting, and benefit cost.

A community of five people is voting to decide on public good provision. There are three proposals:

Proposal A: Build a moat around the community and fill it with alligators to prevent anyone entering or exiting. Total cost is $4,000 ($800 each).

Proposal B: Build a stage in the town square, cover it so it can be used in all weather, and install a state-of-the-art Karaoke machine. Total cost is $5000 ($1,000 each).

Proposal C: Install a statue of the town's founder, Ebenezer Crumblebucket, in the town square to honor his memory. Total cost is $7,500 ($1,500 each)

This table records each household's WTP for each proposal.

Household Name	Proposal A- moat ($800 each)	Proposal B-stage ($1,000 each)	Proposal C-statue ($1,500 each)
Crumblebucket	$600	$200	$7,000
Lancelot	$2,000	$1,100	$1,000
Kravitz	$200	$1,500	$200
Crumblebucket-Kardashian	$900	$1,000	$3,000
McPeak	$300	$100	$1,300

1. Each household votes on each proposal. How will they vote? (circle)

	Proposal A - Moat	Proposal B- stage	Proposal C- statue
Crumblebucket	Yes No	Yes No	Yes No
Lancelot	Yes No	Yes No	Yes No
Kravitz	Yes No	Yes No	Yes No
Crumblebucket-Kardashian	Yes No	Yes No	Yes No
McPeak	Yes No	Yes No	Yes No

b) What is the sum of the WTP minus the cost of each project?

Proposal A- moat	Proposal B - stage	Proposal C - statue

c) Did voting lead us to select the economically efficient outcome?Explain why or why not.