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The local government is considering whether to build a new dog park. The cost of the dog park is known to be $100. There are
The local government is considering whether to build a new dog park. The cost of the dog park is known to be $100. There are four citizens who might use the dog park. The private benefit of the dog park to each of them is: Abby ($25), Ben ($30), Casper ($50), Danny ($5). Which of the following statements are true? Group of answer choices It is socially efficient to provide the dog park, and the government does not need to intervene as the competitive market will ensure that it is built. It is socially efficient to provide the dog park, but the local government will need to intervene in the market to ensure that it is built It is socially efficient to provide the dog park, and the government can ensure that the dog park is provided by setting the Lindahl tax equal to $25 for each citizen. Both (b) and (c) are correct
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