A cost-benefit analysis suggests that a nuclear power station project could be socially worthwhile, even though it would take 10 years to become operational. Why might a government choose not to carry out the project?
- ACost-benefit analysis has no method for valuing the long-term impact of a project.
- BCost-benefit analysis is only suitable for private sector projects.
- CThe government believes that the project has too high an opportunity cost.
- DThe government’s policy is to restrict the extent of the market system.