Government imposing a tax

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An example of a public good is a fireworks display. Nobody can be excluded from enjoying them, and this leads to a "free-rider" problem. But there are also an "economies of scale" aspect of it: watching a grand fireworks gives much more pleasure than just a few sparkles in a backyard - which leads to the fact that the best fireworks display are those produced by the government (maybe?).

a) What do you say to the idea of a city government imposing a tax on those who watch the fireworks? Give me two reasons to support it, and two reasons not to support it.

Reference no: EM132258344

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