When applying cost–benefit analysis, which option correctly indicates what counts as private cost (PC) and what counts as external costs (EC)?
- Athe cost of building the railway line = EC; the increased noise levels = PC
- Bthe cost of building the railway line = EC; the increased noise levels = EC
- Cthe cost of building the railway line = PC; the increased noise levels = EC
- Dthe cost of building the railway line = PC; the increased noise levels = PC