A region is considering two sites on which to locate a new wastewater treatment plant.
Site A has been owned by the region for five years and the region initially paid $200,000 for the land.The current market value of the site is $400,000.Site B is land the region would have to purchase for $300,000.What is the social opportunity cost of each site? Based on this,which site should they choose?

Question

Quizplus · Accepted Answer

The Answer of A region is considering two sites on which to locate a new wastewater treatment plant.
Site A has been owned by the region for five years and the region initially paid $200,000 for the land.The current market value of the site is $400,000.Site B is land the region would have to purchase for $300,000.What is the social opportunity cost of each site? Based on this,which site should they choose?

A Region Is Considering Two Sites on Which to Locate