A small coastal town relies on a lighthouse for safe navigation, which is currently funded by a mandatory fee for all residents. A proposal is made to switch to a voluntary contribution system where residents can donate as they see fit. Considering the nature of the service provided by the lighthouse, what is the most probable outcome of this change in funding?
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Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
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Government Provision of Public Goods
A small coastal town relies on a lighthouse for safe navigation, which is currently funded by a mandatory fee for all residents. A proposal is made to switch to a voluntary contribution system where residents can donate as they see fit. Considering the nature of the service provided by the lighthouse, what is the most probable outcome of this change in funding?
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