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Balestan is building an airport. The value of the airport does not depend on who builds it. It will cost Quizarra Inc. 14.1 Bobos to
Balestan is building an airport.
- The value of the airport does not depend on who builds it.
- It will cost Quizarra Inc. 14.1 Bobos to build it and Quizarra tells the government it will build the airport if the government pays it 23.1 Bobos.
- It will cost Ana Sora Industries 9.3 Bobos to build it, and Ana Sora tells the government it will build the airport if the government pays it 15 Bobos.
Because Quizarra's owner is King Bob's cousin, Quizarra is awarded the contract, builds the airport, and the government pays it 23.1 Bobos. By how much would surplus change if Ana Sora built the airport instead?
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