Assume that abby, ben, and clara are the only citizens in a community. a proposed public good has a total cost of $1,000. 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. based on economic analysis, the public good should: a. be produced, because the benefits are greater than the costs b. not be produced, because the costs are greater than the benefits c. be put to a vote, and produced only if voters approve it d. not be produced, even if voters vote in favor of it.

Question

Savannah Cross

Business

22 May, 17:20

Assume that abby, ben, and clara are the only citizens in a community. a proposed public good has a total cost of $1,000. 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. based on economic analysis, the public good should: a. be produced, because the benefits are greater than the costs b. not be produced, because the costs are greater than the benefits c. be put to a vote, and produced only if voters approve it d. not be produced, even if voters vote in favor of it.

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Aileen Mcbride · Answer 1

Assume that abby, ben, and clara are the only citizens in a community. a proposed public good has a total cost of $1,000. 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. based on economic analysis, the public good should: be produced, because the benefits are greater than the costs

Explanation:

When the cost benefit is more than the total cost, such product is permissible to be produced just like the above analogy for the three citizens