Identify benefits and costs for Problem 1-21.
Suppose you are assigned the task of determining the route of a new highway through an older section of town. The highway will require that many older homes must be either relocated or torn down. Two possible criteria that might be used in deciding exactly where to locate the highway are:
(a) Ensure that there are benefits to those who gain from the decision and that no one is harmed by the decision.
(b) Ensure that the benefits to those who gain from the decision are greater than the losses of those who are harmed by the decision.
Which criterion will you select to use in determining the route of the highway? Explain.