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(TCO B) Here are the annual personal benefits of a proposed Dog Romp Zone (DRZ) as perceived by Ann (A), Bob (B), and Chris (C):
The overall annual total cost of the DRZ is $600.
Does the DRZ represent a potential Pareto improvement? Incorporating numbers into your answer, say why or why not. (4 points)
Suppose each individual will be assessed an equal share of the annual total cost. Will the project be approved in a majority-rule voting process? Incorporating numbers into your answer, explain why or why not. (8 points)
Devise a cost-allocation scheme for A, B, and C that would ensure passage of the proposal in a majority-rule voting process. Explain why your scheme would work. (8 points)
(Points : 20)
