Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $400 each to Abby, Ben, and Clara. In a majority vote, this proposal will most likely be:
A. Accepted; the public good is produced even though it is economically inefficient
B. Defeated; the public good is not produced even though it would have been efficient to do so
C. Accepted; the public good is produced which is economically efficient
D. Defeated; the public good is not produced, which is the proper outcome
C. Accepted; the public good is produced which is economically efficient
Economics