Suppose there are only five people in a society and each favors one of the five highway construction options in Table 16.2 (include no highway construction as one of the options).
Cost-Benefit Analysis for a National Highway
Construction Project (in Billions)

Explain which of these highway options will be selected using a majority paired-choice vote. Will this option be the optimal size of the project from an economicperspective?

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Total Cost Marginal Total Marginal Net Benefit of Project Cost Benefit Beit (4) (2) Plan No new construction A: Widen existing highways B: New 2-lane highways C: New 4-lane highways D: New 6-lane highways 10 18 28 13 23 26 I0 l0