Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the new year. fireworks cost $300. in each town, some people enjoy fireworks more than others. in the town of bayport, each of the residents values the public good as follows:

The final sentence is correct.

1) Town of Bayport:

We have that the residents value the fireworks at a total of 50+100+300=$450.

They would also have to pay 360$ for the fireworks. The total outcome is $450 - $360 = $90. So, the outcome is positive and the fireworks pass the cost benefit.

To split the cost of fireworks equally, we have that each of the 3 residents has to pay  

360/3=$120.  

For the individual person,

Jacques stands to gain $50 from the fireworks but would have to pay $120. He will vote against it.  

Also, Kyoko will gain $100 but would have to pay $120.  

As a result, he will vote against.  

Musashi on the other hand, would have a profit of $300 and only pay $120.  

So, he will vote for it

We have that 2 out of the 3 would vote against the fireworks, so that the fireworks will not be bought.  

2) Town of River Heights:

We have that the total value of the fireworks to the community of

20+140+160=$320.  

The total value of the firework are lower than the cost so it will not be voted for  

For each resident:

The cost to 3 resident is 360/3=$120 each

Rina is against the fireworks since she will only gain $20.

Sean and are for the fireworks since he wil gain $140  

Yvette’s cost for the fireworks since she will gain $$160

For Sean and Yvette they  will vote for the fireworks because they ave a profit greater than $120 and one will vote against and fireworks will be bought.

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