Business, 27.07.2021 18:40 suzymott1562
Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $420. 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:
Eric 60
Ginny 150
Kenji 180
Required:
a. Would fireworks pass a costâbenefit analysis? Explain.
b. 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, and who would vote against? Would the vote yield the same answer as the costâbenefit analysis?
Answers: 2
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