Principles of Microeconomics California Edition 2nd Edition
2nd Edition
ISBN: 9780393622089
Author: Dirk Mateer, Lee Coppock
Publisher: W. W. Norton
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Chapter 7, Problem 4QR
To determine
Explain the cost–benefit analysis
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What is cost–benefit analysis of public goods?Why is it important? Why is it hard?
One hundred of the voters in a town are willing to pay $100 each to support a public green space, which will cost $10,000 to build and maintain. One hundred and fifty voters in the same town do not value the public green space. What is the socially optimal outcome?
I don’t know what the correct answers to this. I’ve asked a couple times and it still wrong. The only options left are 1) cost benefit analysis is likely to lead to implementation policies that promote private provision of goods and services or 2) some item of value doesn’t have an owner with legal authority to control it.
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Principles of Microeconomics California Edition 2nd Edition
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