Analysis the project status - bridge project, Microeconomics

The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million.  Unfortunately, the costs have been much higher than anticipated.  The government has spent $1.2 million so far and now expects that it will cost an additional $2.2 million to finish the project.  Should the project be completed or abandoned?  Why?

 

Posted Date: 3/8/2013 1:36:17 AM | Location : United States







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