Question
Consider two possible public works projects: Project A and Project B.The costs and benefits of each project to each citizen depends on the citizen's height.The
Consider two possible public works projects: Project A and Project B.The costs and benefits of each project to each citizen depends on the citizen's height.The costs and benefits of each project to tall citizens and short citizens are summarized in the table below:
Project A Project B
Benefits
Tall Citizens $170 $130
Short Citizens $150 $100
Costs
Tall Citizens $210 $100
Short Citizens $100 $90
What is the distributional weight of each dollar spent or received by a short citizen (relative to that of a tall citizen) that would make the values of these two projects be equal?
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