Protect itself from the risk of flooding

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Reference no: EM131046359

Suppose your town wishes to build a dam to protect itself from the risk of flooding. Despite the fact that each family in the town is willing and able to pay $200 to have the dam built and it will cost only $150 per family, a voluntary contribution campaign is unable to raise enough funds to build the dam. Why? What type of problem is this, and what solution would you recommend?

Reference no: EM131046359

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