Question

You are an intern to the editor of a​ small-town newspaper in​ Mallsburg, Pennsylvania. Your​ boss, the​ editor, asks you to write the first draft of an editorial for this​ week's paper. Your assignment is to describe the costs and the benefits of building a new bridge across the railroad tracks in the center of town.​ Currently, most people who live in this town must drive 2 miles through thickly congested traffic to the existing bridge to get to the main shopping and employment center. The bridge will cost the citizens of Mallsburg​ $25 million, which will be paid for with a tax on their incomes over the next 20 years.

Required:
a.What are the opportunity costs of building this bridge?
b. What are the benefits that citizens will likely receive if the bridge is built?
c. What other factors might you consider in writing this editorial?

Answer 1

The opportunity costs of building this bridge could be from people coming into the town and making purchases within the town. Benefits for the citizens would be less traffic and being able to get around faster. Other factors would be the cost of taxes and how they would probably go up in order to pay off $25 million.