A local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track, for which it is paid $180 by the State Government. The firm incurs no other costs apart from the wage bill in constructing the track. The government is to charge a fee to users of the track and the present value of the fees paid is estimated to be $100.Consumers place a net present value (net of the fees and any other costs incurred) of $50 on the track's services. The labour employed to construct the track would otherwise be unemployed and the value of its non-market activity is estimated to be $50.

3. A local rm hires $150 of unskilled labour at the minimum wage and constructs a walking track, for which it is paid $180 by the State Government. The rm incurs no other costs apart from the wage bill in constructing the track. The government is to charge a fee to users of the track and the present value of the fees paid is estimated to be $100. Consumers place a net present value (net of the fees and any other costs incurred) of $50 on the track's services. The labour employed to construct the track would otherwise be unemployed and the value of its non-market activity is estimated to be $50. A) Calculate the net benet of the project to the following stakeholders: (i) the rm (ii) consumers (iii) labour (iv) the government B) Calculate the economic net benet of the project