Mike Miller is the town manager of Medfield, a town with 50,000 residents. At a recent town meeting, several citizens proposed building a large public swimming pool in the center of town for all of the residents to enjoy. A survey of all 50,000 residents revealed that the pool would be worth $50 to each of them. The cost to build the swimming pool is $1,000,000 . Which of the following is the
most efficient option?
a. The pool should be built and paid for with donations collected from residents, as these donations should more than cover the cost of the pool.
b. The pool should be built and paid for by the town government and paid for with a tax on the residents because all residents would benefit from it but some residents would not donate if they were asked.
c. The pool should be built and paid for by the wealthiest ten percent of the residents.
d. The pool should not be built because the social value does not exceed the cost.
b
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