The Bruce Highway (from Cooroy to Curra) is currently being upgraded. The total expense of the project is 1.6 billion dollars and the federal government has contributed 1.1 billion of those dollars whilst the Queensland State Government has contributed the remaining 500 million dollars. If the only people to receive any benefit from the highway are those that use it, and the users are estimated to drive 20 million trips per year, over the next 8 years, what is the minimum the users must value each trip if the project is to be efficient? Answer to the nearest whole dollar per trip.
The Bruce Highway (from Cooroy to Curra) is currently being upgraded. The total expense of the project is 1.6 billion dollars and the federal government has contributed 1.1 billion of those dollars whilst the Queensland State Government has contributed the remaining 500 million dollars. If the only people to receive any benefit from the highway are those that use it, and the users are estimated to drive 20 million trips per year, over the next 8 years, what is the minimum the users must value each trip if the project is to be efficient? Answer to the nearest whole dollar per trip.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Economics
The Bruce Highway (from Cooroy to Curra) is currently being upgraded. The total expense of the project is 1.6 billion dollars and the federal government has contributed 1.1 billion of those dollars whilst the Queensland State Government has contributed the remaining 500 million dollars. If the only people to receive any benefit from the highway are those that use it, and the users are estimated to drive 20 million trips per year, over the next 8 years, what is the minimum the users must value each trip if the project is to be efficient? Answer to the nearest whole dollar per trip.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education