Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

The government must select the best location from four possible sites for a port. The benefits and costs for each site are given in $m in the table. Which site would be selected?

  • ASite A (private benefits 700, external benefits 1100, private costs 20, external costs 5)
  • BSite B (private benefits 800, external benefits 1100, private costs 80, external costs 40)
  • CSite C (private benefits 900, external benefits 600, private costs 10, external costs 50)
  • DSite D (private benefits 1000, external benefits 900, private costs 100, external costs 200)

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI