Sophia, Victoria, and Eve all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Sophia values the benches at $25, Victoria at $35, and Eve at $42. The park benches and labor for installation cost $100. If they are the only residents who value the benches, what should the neighborhood association do? Install the park benches because the benefits outweigh the costs.

Sophia, Victoria, and Eve all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Sophia values the benches at $25, Victoria at $35, and Eve at $42. The park benches and labor for installation cost $100. If they are the only residents who value the benches, what should the neighborhood association do? Install the park benches because the benefits outweigh the costs.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 4MC

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who is responsible for executing the budgetand plansdrawn up for a firm
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