9781118041581

Evaluating a Public Project 477 better than the alternative of regulating the private transport market? Would private investment ...

FIGURE 11.4 A Benefit-Cost Analysis of Building a Bridge The bridge should be built because its projected net benefit is positiv ...

Evaluating a Public Project 479 generates no revenue. The second line makes the key point: The entire ben- efit of the bridge ta ...

Could a private firm profitably build and operate the bridge? Assume it faces the same costs and interest rate as the government ...

Valuing Benefits and Costs 481 All nonmarketed goods are difficult to value, including national security, pollution, health risk ...

maximum value: the hourly wage one can earn on the job. If one chooses an additional hour of work over leisure, then the worker ...

Valuing Benefits and Costs 483 A second approach examines the amounts of compensation individuals demand for bearing the risk of ...

profit. The presence of monopoly means that prices will be inefficiently high and out- put will be too low. (After the fact, soc ...

Summary 485 SUMMARY Decision-Making Principles There are three main causes of market failure: monopoly power, externalities, an ...

When efficiently functioning markets exist for a program’s inputs and outputs, we can value the associated benefits and costs a ...

Summary 487 c. Analyst C is worried about the pollution externality and, therefore, recommends a tax of 100 per unit of pulp out ...

c. All public buildings owned by those receiving federal funds must be modified where necessary to ensure access for disabled in ...

Summary 489 vis-à-vis the status quo). In both tables, emissions are measured in billions of tons per year. a. Is global warming ...

490 Chapter 11 Regulation, Public Goods, and Benefit-Cost Analysis Number of Facilities Total Benefit in Program to RWE 1 $500,0 ...

Summary 491 each bridge. It has decided to repair those bridges with the greatest benefit-cost ratios until its budget is exhaus ...

a. What is the developer’s most profitable site? Suppose the developer negotiates with a number of towns. At which site would yo ...

Summary 493 b. Suppose the council increases the value of a life to $7.2 million. How does the value placed on a life influence ...

revenue is given by R t(Q u), and the firms’ total pollution related costs are t(Q u) 5u^2 (cell D19). Find the optimal outp ...

Summary 495 The following articles are classic treatments concerning the difficulties of regulation and the remedies provided by ...

a. (1) A survey would provide direct information on workers’ risk perceptions. (2) An indirect market approach would examine th ...