Clint, Lee and Eli Are the Only Three Residents of the Village

Multiple Choice

Clint, Lee and Eli are the only three residents of the village of Fantasma. They are considering whether to construct a hiking trail in the mountains surrounding the village. Because congestion on the trail is unlikely, it would be nonrival. Clint values the trail at $300 per month, Lee values the trail at $100 per month, and Eli values the trail at $80 per month. The cost of building and maintaining the trail is $420 per month. Given this information, it is:

A) socially optimal to build the trail.
B) not socially optimal to build the trail.
C) only socially optimal to build the trail if the majority of voters are in favor.
D) not socially optimal to build the trail if it is paid for through taxes.