A city is considering building a new public park. The estimated marginal benefit from increased community happiness and property values is $500,000, while the marginal cost of construction and maintenance is projected to be $300,000. Based on marginal cost and benefit analysis, how should the city categorize this decision?

The city should view the decision to build the new public park as a positive one based on marginal cost and benefit analysis. The estimated marginal benefit of $500,000 from increased community happiness and higher property values is greater than the marginal cost of $300,000 for construction and maintenance. This means that the park will provide more value to the community than it will cost to create and maintain it. For example, if the city spends $300,000 to build the park, it gains $200,000 in net benefits, which can lead to happier residents and potentially higher property prices. Therefore, since the benefits outweigh the costs, the city should categorize this decision as worthwhile and beneficial for the community.