The state of New Porkswick is one of ten states in the democratic nation of Fatlandia.Each state has ten thousand residents.Although incomes vary,each Fatlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country.Fatlandia currently has one army base in each of two states and is considering establishing some new ones.An army base adds $250,000 to a state's local economy each year.The total cost of one army base is estimated to be $1,000,000 per year.The increased security of having additional army bases equals $10,000,000 - (3,000,000 * the number of bases) per year.
Suppose the department of defense in Fatlandia has proposed adding two additional bases for a total of four bases.Based solely on per person local benefits and tax increases,residents of New Porkswick will have a net gain if
A) a base is added in New Porkswick but not in the other state.
B) new bases are installed in both states.
C) no new bases are added.
D) a total of three new bases are added only if one is in New Porkswick.
Correct Answer:
Verified
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