About 80% of the U.S. federal money that could have been spent on the project co

Question

About 80% of the U.S. federal money that could have been spent on the project could alternatively have been used to improve the subway system. Is this fact relevant for estimating the net benefit of the project? If your answer is yes, compare a reasonable estimate of the net benefit of the MO project when the federal money could be used in this alternative way to the net benefit of the MO project if the federal money could only be used for highway construction. If your answer is no, explain why the possible alternative use of the funds is irrelevant.

Explanation / Answer

Yes this fact is relevant becasue here in applies the concept of opportunity cost. If there is an alternative where in money could have been spent and for that the subway system can be corrected. So if this money is invested in this project then the subways system work will need extra money

So now the comparison of benefits should be done. The option with more benefits will give better results.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.