Suppose Each of 20 Neighbours on a Street Values Street

Multiple Choice

Suppose each of 20 neighbours on a street values street repairs at €3,000. The cost of the street repair is €40,000. Which of the following statements is true?

A) It is efficient for the government to tax the residents €2,000 each and repair the road.
B) It is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home.
C) None of these answers are true.
D) It is not efficient to have the street repaired.