Economics 9708 · AS & A Level · Government intervention in markets

Government intervention in markets — practice question

The table presents some of the costs and benefits, in $ millions, linked to a road-building project. A government department and a profit-maximising private firm are both thinking about constructing the road. Which of them would be prepared to build the road?

  • ABoth would be willing to build it.
  • BNeither would be willing to build it.
  • COnly the government department would be willing to build it.
  • DOnly the private firm would be willing to build it.

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