Suppose there are two consumers in the whole economy. If the cost of a public good is 100, and the maximum willingness to pay for a public good for consumers 1 and 2 is 80 and 25, would it still be efficient to provide public good?
Here is my confusion:
Because total willingness is greater than the cost, the good should be efficient to provide.
If I think of max willingness to pay as benefit derived, then total benefit > total cost, so it would be inefficient because they need to be equal.