The government of LeisureLand is considering whether to build a new public swimming pool. The social cost of building the pool is known to be $100. There are five citizens of LeisureLand who might use...

The government of LeisureLand is considering whether to build a new public swimming pool. The social cost of building the pool is known to be $100. There are five citizens of LeisureLand who might use the pool and who have private valuations of the pool as follows: Astrid ($10), Ben ($40), Cate ($50), Dan ($75) and Ed ($75). Is it socially optimal for the swimming pool to be built? Will this happen in a competitive market? What policy solutions could the government of LeisureLand use to get the socially optimal outcome?