A-LevelEconomicsMicroeconomics: Market Failure & Government InterventionMay/June 2018Paper 3 Q31 Mark
The table shows some of the costs and benefits, in $ millions, associated with a road building project. Both a government department and a profit-maximising private firm are considering building the road. private costs | external costs | external benefits | social benefits --------------|----------------|-------------------|--------------- 450 | 75 | 50 | 550 Who would be willing to build the road? A Both would be willing to build it. B Neither would be willing to build it. C Only the government department would be willing to build it. D Only the private firm would be willing to build it.
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