the table above shows the costs and benefits for new construction projects the government is considering. based on these costs and benefits, which of the construction projects should the government undertake?
The government should undertake the construction project(s) where the total benefits are greater than (and ideally far exceed) the total costs , and among those, it should choose the project with the highest net benefit (total benefits minus total costs).
How the choice is made
Using standard cost‑benefit analysis, the government should:
- Calculate net benefits for each project:
Net benefit=Total benefit−Total cost\text{Net benefit}=\text{Total benefit}-\text{Total cost}Net benefit=Total benefit−Total cost.
- Eliminate any project for which costs exceed benefits (negative net benefit).
- Compare the remaining projects and pick the one with the largest positive net benefit , since that yields the greatest gain to society.
Applying this to “the table above”
Because your question refers to a specific table of costs and benefits, the concrete answer is:
- Compute net benefit for each row in that table.
- The government should choose the project (or level of project) with the highest net benefit value in that table , as long as that net benefit is positive.
If you paste the numbers from the table (cost and benefit for each project), I can calculate the exact project name/letter and show the net benefit for each one.
