A government conducts a cost-benefit analysis for the construction of a new airport. It works out that the costs of building and operating the airport will be lower than the income the airport will earn. It also predicts that the benefits to third parties will exceed the costs to third parties. Which reason could the government give for choosing not to build this airport?
- AThe external costs exceed the external benefits.
- BThe net private benefit is greater on another project.
- CThe net social benefit is greater on another project.
- DThe social costs exceed the social benefits.