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14 A government decided to approve a private airport-building scheme because it was socially
beneficial. In making its decision it calculated private costs at $700m, private benefits at $800m
and external costs at $200m.
What does this suggest must have been true about the external benefits of the scheme?
A External benefits equalled private benefits.
B External benefits exceeded $100m.
C External benefits exceeded external costs.
D There were no external benefits
why is the ans:B ???
beneficial. In making its decision it calculated private costs at $700m, private benefits at $800m
and external costs at $200m.
What does this suggest must have been true about the external benefits of the scheme?
A External benefits equalled private benefits.
B External benefits exceeded $100m.
C External benefits exceeded external costs.
D There were no external benefits
why is the ans:B ???