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Public Project Feasibility Analysis
A small community is considering building a new public park. The total cost to build the park is $1,000. There are five residents in the community, and their individual willingness to pay for the park is as follows:
- Resident 1: $400
- Resident 2: $300
- Resident 3: $250
- Resident 4: $100
- Resident 5: $50
From an economic efficiency standpoint, should the community build the park? Justify your answer by calculating the total potential net benefit to the residents.
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