A government is deciding among four possible routes for a new road. The table shows the costs and benefits linked to each route. The government aims to achieve the greatest return for taxpayers by maximising social benefit relative to private cost. Which route will the government choose?
- AA: private costs $20 million, private benefits $25 million, external benefits 5
- BB: private costs $25 million, private benefits $30 million, external benefits 10
- CC: private costs $20 million, private benefits $25 million, external benefits 10
- DD: private costs $30 million, private benefits $35 million, external benefits 10