Suppose that total costs (TC) double for each project listed in the table below. Cost-Benefit Analysis for a National Highway Construction Project (in Billons) (2) Total Cost of Project (3) Marginal (4) Total Benefit $0 200 (5) Marginal Benefit (1) Plan No new construction A: Widen existing highways B: New 2-1ane highways C: New 4-lane highways D: New 6-1ane highways (6) Mat Benefit $ 0 150 Cost 50 $50 $ 200 140 90 350 150 210 230 240 100 470 120 620 380 580 110 -40 Which project(s) is (are) now economically viable? O Plan A only O Plans C and D only O Plans B and C Plans A and B only O None of the projects are economically viable.
Suppose that total costs (TC) double for each project listed in the table below. Cost-Benefit Analysis for a National Highway Construction Project (in Billons) (2) Total Cost of Project (3) Marginal (4) Total Benefit $0 200 (5) Marginal Benefit (1) Plan No new construction A: Widen existing highways B: New 2-1ane highways C: New 4-lane highways D: New 6-1ane highways (6) Mat Benefit $ 0 150 Cost 50 $50 $ 200 140 90 350 150 210 230 240 100 470 120 620 380 580 110 -40 Which project(s) is (are) now economically viable? O Plan A only O Plans C and D only O Plans B and C Plans A and B only O None of the projects are economically viable.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that total costs (TC) double for each project listed in the table below.
Cost-Benefit Analysis for a National Highway Construction Project (in Billons)
(2) Total Cost
of Project
(3) Marginal
(4) Total
Benefit
$0
200
(5) Marginal
Benefit
(1) Plan
No new construction
A: Widen existing highways
B: New 2-1ane highways
C: New 4-lane highways
D: New 6-1ane highways
(6) Mat
Benefit
$ 0
150
Cost
50
$50
$ 200
140
90
350
150
210
230
240
100
470
120
620
380
580
110
-40
Which project(s) is (are) now economically viable?
O Plan A only
O Plans C and D only
O Plans B and C
Plans A and B only
O None of the projects are economically viable.
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