Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The table presents the outcome of a cost-benefit analysis carried out by a government while it was deciding whether to invest US$200 million in a new airport construction project. The airport will be built if the net social benefit delivers a return of at least 10% on the investment. What minimum external benefit, in US$ million, is required to reach this?

  • A10
  • B20
  • C30
  • D40

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