Residents of Hang-Zhou, China, Like Seeing Fireworks During Their Chinese

Multiple Choice

Residents of Hang-Zhou, China, like seeing fireworks during their Chinese New Year celebration. Each of the city's one million residents places a value of $ one on the fireworks experience. The cost of providing the fireworks is $250 000. Which of the following statements is most correct?

A) because the collective benefits exceed the cost, the private market will provide an efficient number of fireworks
B) an entrepreneur in Hang-Zhou is likely to provide some amount of fireworks for residents of the city and the provision level is likely to be efficient
C) fireworks are not excludable so private markets will not produce an efficient outcome
D) because China is a communist country, market incentives are irrelevant to how people behave