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Minimum amount that the factory owner would have

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Assume that locating a cement factory in the middle of Boston would save the producer $5 million at a public expense, in pollution and traffic noise, of $20 for each of 500,000 Boston residents. 1. What is the minimum amount that Boston residents would have to pay to stop the plant from being built if the owner has a legal right to build? $ million. 2. What is the minimum amount that the factory owner would have to pay Boston residents to build the plant if the city had a right to stop the building? $ million. 3. What proportion of Boston residents would have to contribute to a fund to stop the plant for that fund to stop construction? (assuming that each of these contributors would contribute the maximum amount that they might contribute

Reference no: EM131153806

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