Suppose that a bridge-building-project is evaluated simultaneously by the private firm and by the Government. Lets assume that the bridge is only a temporary bridge and lasts for one year only. The financial cost of inputs used in the construction of this bridge is estimated to be 600 million euros. It has been also estimated that these inputs (if they were used in the best alternative way) would have brought 550 million euros of benefits to the society. Lets suppose that there are no maintenance costs of the bridge, once the bridge is built. Lets also assume that the interest rate is 0. It is also estimated that the bridge will bring along damage to the environment that is measured by the social cost of 30 million euros. The estimated demand (available for the private firm and Government) for bridge-crossings at different fees is following:

Fee per crossing (in euros) 0 2 4 6 8 10 12 14 16 18 20

Demand (in millions of crossings) 100 90 80 70 60 50 40 30 20 10 0

This means that the demand for bridge-crossings is described by function X_D = 100 5P_x, where the X_D denotes the number of bridge-crossings in millions and P_x denotes the fee (in euros) charged per bridge-crossing. Lets also assume that, for the Government, the funds required for building the bridge can be raised only via taxes, whereas the deadweight loss associated with implementation of such taxes is 100 million euros. Analyze and provide numerical proof, whether this bridge-building-project should be implemented or not. Please also discuss whether the decision by the profit-maximizing private firm would differ from the Governments decision (societys viewpoint)? Discuss why yes, or why not? Justify your answer with the valid calculations and explanations of these calculations.