Is the provision of the fireworks display efficient

Reference no: EM13214291

A five-person city is debating the provision of the annual July 4th Fireworks Display that everyone in the city would be able to enjoy. The cost of providing the display is fixed at $250. The willingness to pay for the festival is given in the following table: Name: Willingness to Pay: Michelle $75 Harold $45 Christian $150 Claudia $40 Steven $35

A) Is the provision of the Fireworks Display efficient from an economic standpoint? Briefly explain.

B) Will the Fireworks Display be provided voluntarily without government intervention? Briefly explain.

C) If the proposal to divide the cost equally between the citizens comes to a vote, will it pass? Briefly explain.

Reference no: EM13214291

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