2) subsidize 20% of state spending on road construction projects Assume 25 states will undertake the repairs regardless of federal funding, 15 states will undertake the repairs if they receive the federal subsidy, and 10 states will not undertake the repairs either way. How much spending on road construction occurs per dollar of federal spending from implementing option 2?

2) subsidize 20% of state spending on road construction projects Assume 25 states will undertake the repairs regardless of federal funding, 15 states will undertake the repairs if they receive the federal subsidy, and 10 states will not undertake the repairs either way. How much spending on road construction occurs per dollar of federal spending from implementing option 2?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...

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