A public service official is appraising a project proposal for a project to be done by a domestic firm. The project's present values of benefits and costs, at market prices, are $3000 and $1550 respectively. If the project goes ahead, tax of $700 will be paid to the country, and pollution costing an estimated $250 will occur in the country. Assuming that the firm is a part of the referent group, what are the net present values generated by: a) The market cost benefit analysis = $ b) the private cost-benefit analysis = $ c) The efficiency cost benefit analysis = $ d) the referent group cost benefit analysis = $
A public service official is appraising a project proposal for a project to be done by a domestic firm. The project's present values of benefits and costs, at market prices, are $3000 and $1550 respectively. If the project goes ahead, tax of $700 will be paid to the country, and pollution costing an estimated $250 will occur in the country. Assuming that the firm is a part of the referent group, what are the net present values generated by: a) The market cost benefit analysis = $ b) the private cost-benefit analysis = $ c) The efficiency cost benefit analysis = $ d) the referent group cost benefit analysis = $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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