Suppose the government plans to build a dam at one of several locations in the country. The government should build the dam in the location where:

Question

Quizplus · Accepted Answer

The government should build the dam in the location where the net benefit of building the dam is the greatest. This takes into account both the costs of building the dam and the benefits that will accrue from it. Choosing the location where the net benefit is greatest ensures that resources are being used efficiently and that the greatest overall benefit is gained.

Suppose the Government Plans to Build a Dam at One