The numbers in the following table represent marginal benefits and marginal costs for three proposed projects...
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The numbers in the following table represent marginal benefits and marginal costs for three proposed projects (based on each legislator's respective constituents' preferences). Projects are officially adopted based on a simple majority. (That table also includes optional blank columns that you may wish to use to help with your calculations.) PROJECT SCHOOL PUBLIC POOL BRIDGE Marginal Benefits (MB) and Marginal Costs (MC) Of Three Proposed Projects LEGISLATOR #1 LEGISLATOR #2 LEGISLATOR #3 MC MB MC $40 $60 $40 $30 SO $800 MB SO $10 $850 $40 $30 $800 MB $100 SO $750 MC $40 $30 $800 a. Suppose that logrolling is NOT allowed. Identify which projects will and will not be adopted. Explain your answer. b. Now, suppose that logrolling is allowed. Identify which projects will be adopted and which will not be adopted. Explain your answer. c. Compare and contrast the social efficiency of the projects adopted under both part a. and part b. Explain your answer. The numbers in the following table represent marginal benefits and marginal costs for three proposed projects (based on each legislator's respective constituents' preferences). Projects are officially adopted based on a simple majority. (That table also includes optional blank columns that you may wish to use to help with your calculations.) PROJECT SCHOOL PUBLIC POOL BRIDGE Marginal Benefits (MB) and Marginal Costs (MC) Of Three Proposed Projects LEGISLATOR #1 LEGISLATOR #2 LEGISLATOR #3 MC MB MC $40 $60 $40 $30 SO $800 MB SO $10 $850 $40 $30 $800 MB $100 SO $750 MC $40 $30 $800 a. Suppose that logrolling is NOT allowed. Identify which projects will and will not be adopted. Explain your answer. b. Now, suppose that logrolling is allowed. Identify which projects will be adopted and which will not be adopted. Explain your answer. c. Compare and contrast the social efficiency of the projects adopted under both part a. and part b. Explain your answer.
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a If logrolling is not allowed then legislators will only vote for projects that benefit their own c... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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