Economics 2281 · O Level · Market failure

Market failure — practice question

In Australia, there was a plan for a project to develop one of the world’s largest coal mines. The project was expected to cost $\text{US}\$12.5$ million. It would generate jobs but endanger species that are at risk, since large coal ships would harm the Great Barrier Reef. What effects would this project have on the following costs and benefits?

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