Calculating Shadow prices is important in Social cost-benefit analysis especially in developin countries because of all the following reasons EXCEPT: a. perfect competitive markets do not exist for most goods and services b. market prices do not exist for some intangible costs and benefits C. market prices usually do not reflect the true cost of resources to the society d. market prices do not reflect the costs of production
Calculating Shadow prices is important in Social cost-benefit analysis especially in developin countries because of all the following reasons EXCEPT: a. perfect competitive markets do not exist for most goods and services b. market prices do not exist for some intangible costs and benefits C. market prices usually do not reflect the true cost of resources to the society d. market prices do not reflect the costs of production
Chapter32: The Land Market And Natural Resources
Section: Chapter Questions
Problem 10E
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![4- Calculating Shadow prices is important in Social cost-benefit analysis especially in developin
countries because of all the following reasons EXCEPT:
a. perfect competitive markets do not exist for most goods and services
b. market prices do not exist for some intangible costs and benefits
C.
market prices usually do not reflect the true cost of resources to the society
d. market prices do not reflect the costs of production
5- The incremental NPV approach
a. Usually leads to same choices as the NPV approach
b. Is typically used when there are concerns regarding spending larger capital
c. Is rarely used in practice
d. Can only compare between two mutually exclusive projects](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c09cda8-9449-4cfd-99d0-d7ccecd9c5e9%2F47a2bc18-a4aa-4ee9-be66-5b01f426bde6%2F5w5lqpx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4- Calculating Shadow prices is important in Social cost-benefit analysis especially in developin
countries because of all the following reasons EXCEPT:
a. perfect competitive markets do not exist for most goods and services
b. market prices do not exist for some intangible costs and benefits
C.
market prices usually do not reflect the true cost of resources to the society
d. market prices do not reflect the costs of production
5- The incremental NPV approach
a. Usually leads to same choices as the NPV approach
b. Is typically used when there are concerns regarding spending larger capital
c. Is rarely used in practice
d. Can only compare between two mutually exclusive projects
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