An Economist Estimates That the Maintenance of a Public Recreation

Multiple Choice

An economist estimates that the maintenance of a public recreation center costs $80,000 a year and that the recreation center generates $65,000 a year in revenue from usage fees. From society's point of view, the maintenance of this recreation center is

A) inefficient, because everyone in the community pays taxes to support it, but only those who pay fees to use the recreation center benefit.
B) efficient because the revenues generated by the recreation center benefit the entire public.
C) potentially efficient because the value of the gains exceed the value of the losses.
D) potentially efficient because no one would be made worse off as a result of maintaining the recreation center.