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. If Clint proposes a tax whereby all three of them split the cost of the trail equally, then will the majority of them support this tax?

A) No, because building the trail is not socially optimal.
B) No, even though building the trail is socially optimal.
C) Yes, even though building the trail is not socially optimal.
D) Yes, because building the trail is socially optimal.