Assume That Abby, Ben, and Clara Are the Only Citizens

Multiple Choice

Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1,000. 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. Based on economic analysis, the public good should

A) be produced, because the benefits are greater than the costs.
B) not be produced, because the costs are greater than the benefits.
C) be put to a vote and produced only if voters approve it.
D) not be produced, even if voters vote in favor of it.