Scenario: Benefits of Social Problems

A community public works project will cost $60,000 and will benefit five different individuals.

Individual	Individual Benefit ($)	Individual Cost ($)
1	1,500	2,000
2	5,500	5,000
3	5,000	6,000
4	25,000	21,000
5	28,00	29,000

Assignment Details

Important!

It is expected that the assignment will be completed using an Excel spreadsheet using formulas.

1. Is this project economically feasible? Please show work in an Excel spreadsheet that lists the benefit for each individual.

2. Would this project be approved by a majority at a majority at a referendum?

3. Does this project meet the Pareto efficiency improvement criterion?

4. If possible, revise the cost shares to allow the project to meet the Pareto criterion and to pass a referendum.