Your local government is contemplating adding a new fireworks show to your town’s fourth of july festivities. they have calculated that the total cost of producing the show will be $3m, and your town has 300,000 residents. the show would be financed through an increase in taxes on each of these residents. under what conditions is the provision of the fireworks show the efficient outcome?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.