Question

Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $300. In each town, some people enjoy fireworks more than others, In the town of Bayport, each of the residents values the public good as follows: Value Dollars) 70 Resident Raphael Susan Alex 90 150 The total benefit of the fireworks display to the town of Bayport is $ . Therefore, fireworks pass the cost-benefit analysis in the town of Bayport. The mayor of Bayport proposes to decide by majority rule and, if the fireworks referendum passes, to split the cost equally among all residents. Who would vote in favor of the fireworks referendum? Check all that apply. Raphael Susan Alex The vote yield the same answer as the cost-benefit analysis. In the town of River Heights, each of the residents values the public good as follows: Value (Dollars) Resident Becky 50 Clancy 110 120 Eileen The total benefit of the fireworks display to the town of River Heights is $ .. Therefore, fireworks pass the cost-benefit analysis in the town of River Heights. The mayor of River Heights also proposes to decide by majority rule and, if the fireworks referendum passes, to split the cost

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Answer 1

Town of Bayposts from old cost @ 300 in each town. Resident Doll 10 display Raphael Susan Alex 90 50 Total benefit of the strework to the town of Baypon is 10+0+150 310 pasine Therefore, fireworks 10 pass the cost-benefit analysis in the town of Bayport (They have to pay $300 por Freworks) The Total cost benefit is $310-300 - $10 out Coma is positive. The fire works just pass the cost ber To split fire works equally, we have 3 Residents to pay P Raphae) Total cost Susan 300 - 100 Alex - * Raphael stands to gain here is $10 from the she works but we have to pay $100. we will vote against * Susan Stance to gain is &90 from the fire works but we have to pay & 100 we will vote against him. * Alex stands to gain is $150 from the fire works but we are paying & 1001- we will vote him The vote Alex yield the same Answer at the cost. ben analysis

Town of River Heights Becky 50 clancy 110 Eileen 120 Torval berefit of the prewory of display To The Toon of River Heights is - 50+ 110 + 120-080 Total cost benefit - $310 - 80 - - 30 The Total value of the Pheworks as lower than the Cost (Negative) The vote o yield the same answer as the cost benefit It will not be voted for analysis To split pire coorks aqually we have free members. O Becky It cancy 300/3 - $100 y Eileen Backy is against the fire worke Belause Becky will gain $50 only * Clancy and are for the fire works since he will a gain & 110 * Eileen cos' will gain & 120. here the clancy and Elleen will vote for the fire works because they have the profit greater than & and here only one will vote against and the fire works will be bought