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A local firm hires $170 of unskilled labour at the minimum wage and constructs a hiking track, for which it is paid $200 by the
A local firm hires $170 of unskilled labour at the minimum wage and constructs a hiking track, for which it is paid $200 by the State government. Apart from wages, the firm incurs no other cost in the project. The government is to charge a fee to users of the track, and the present value of the fees paid is estimated to be $110. The labour employed to construct the track would otherwise be unemployed, and the value of its non-market activity is estimated to be $60. Calculate the net benefit of the project to each member of the disaggregated CBA listed below: the firm = labour = the government =
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