The citizens of Smalltown, U.S.A., like seeing fireworks on the Fourth of July.
Each of the town’s 500 residents places a $10 value on the experience for a total
benefit of $5,000. The cost of putting on a fireworks display is $1,000. Because the
$5,000 benefit exceeds the $1,000 cost, it is efficient for Smalltown to have a fire works display on the Fourth of July.