Question: Consider two possible public works projects: Project A and Project B. The costs and benefits of each project to each citizen depends on the

Consider two possible public works projects: Project A and Project B. The 

Consider two possible public works projects: Project A and Project B. The costs and benefits of each project to each citizen depends on the citizen's height. The costs and benefits of each project to tall citizens and short citizens are summarized in the table below: Project A Project B Benefits Tall Citizens Short Citizens Costs Tall Citizens Short Citizens $375 $250 $310 $225 $425 $180 $300 $180 Part 1) If we care equally about short and tall citizens, what is the net benefit of Project A to this society? Enter your numeric answer here (please provide a whole number as your answer, without the dollar sign): S Part 2) What is the distributional weight of each dollar spent or received by a tall citizen (relative to that of a short citizen) that would make the values of these two projects be equal? Enter your numeric answer, rounded to 2 decimal places:

Step by Step Solution

3.25 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Answer Rounded to 2 decimal places the di... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!