Question
Consider two possible public works projects: Project A and Project B. The cost of Project A is $150,000 and falls entirely on old citizens. Project
Consider two possible public works projects: Project A and Project B. The cost of Project A is $150,000 and falls entirely on old citizens. Project A exclusively benefits old citizens in the amount of $400,000. Project B has a cost of $200,000, which is shared equally by old citizens and young citizens. Project B exclusively benefits young citizens in the amount of $300,000. What is the distributional weight of each dollar spent or received by a young citizen (relative to that of an old citizen) that would make the values of these two projects be equal?
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