Suppose each of 20 neighbours on street values street repairs at €3000 the cost of the street repair is €40,000 which of the following statements is true ?

A. it is efficient for the government to tax the resident €2,000 each and repair the road
B. It is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home
C. None of these answers are true
D. it is not efficient to have the street repaired

Correct Answer: it is efficient for the government to tax the resident €2,000 each and repair the road ✔

Last Updated: June 18, 2019