Paying for a Wi-Fi Network. Consider a small town with 1,000 households. The town could install a wireless Wi-Fi network that would give everyone in town access to the Internet. Each household is...

Paying for a Wi-Fi Network. Consider a small town with 1,000 households. The town could install a wireless Wi-Fi network that would give everyone in town access to the Internet. Each household is willing to pay a maximum of $50 per year for the network, and the cost of the system is $20,000 per year.

a.Is the Wi-Fi system efficient?

b. Suppose the town asks for voluntary contributions to support the network. Would you expect the total contributions to cover the $20,000 cost?

c. Suppose the town keeps track of the contributions and issues passwords to people who contributed at least $20. Would you expect the total contributions to cover the $20,000 cost?