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Drivers often collide accidentally with deer on roads in rural areas. On average, a deer-vehicle collision costs $10,000 in repairs and other harm. Recently, some
Drivers often collide accidentally with deer on roads in rural areas. On average, a deer-vehicle collision costs $10,000 in repairs and other harm. Recently, some economists in Wisconsin have learned that efforts to reintroduce gray wolves have lowered the number of deer-vehicle collisions by an average of 24%. (Wolves eat deer; many deer also anticipate being eaten and move elsewhere.) Wolves also eat farmers' livestock, with the efforts to reintroduce wolves estimated to cost $174,000 per year in terms of livestock lost to wolves. Assume that the only cost of wolf repopulation is livestock damage and that the only benefit is avoided deer-vehicle collisions. Prior to the wolves, there were about 4,600 deer-vehicle collisions in Wisconsin per year. What is the annual net benefit of reintroducing the wolves
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