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2. The State Govemment hires a computer programmer from another State for a month at cost of $30,000, which is $10,000 more than she could
2. The State Govemment hires a computer programmer from another State for a month at cost of $30,000, which is $10,000 more than she could eam during that period in her home State. The State Government also pays $1000 for accommodation in a rent-con trolled apartment with a market value of $1200. The programmer edits some programs and saves the State Govemment $40,000. Assuming the referent group consists of resi- dents of the State: a (i) calculate the net benefit to the referent group (ii) using the appropriate shadow-prices, calculate the net benefit of the project accord ing to an efficiency benefit-cost analysis. 2. The State Govemment hires a computer programmer from another State for a month at cost of $30,000, which is $10,000 more than she could eam during that period in her home State. The State Government also pays $1000 for accommodation in a rent-con trolled apartment with a market value of $1200. The programmer edits some programs and saves the State Govemment $40,000. Assuming the referent group consists of resi- dents of the State: a (i) calculate the net benefit to the referent group (ii) using the appropriate shadow-prices, calculate the net benefit of the project accord ing to an efficiency benefit-cost analysis
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