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Suppose the government is considering building a new highway between Phoenix and Las Vegas. The government is concerned that the new highway will act as
Suppose the government is considering building a new highway between Phoenix and Las Vegas. The government is concerned that the new highway will act as a barrier for deer, dividing their habitat in half, limiting their ability to migrate and thus endangering them. There are two highway proposals, one basic and affordable one that does not address the environmental issue at all, and a more expensive one with many expansive bridges designed for the deer to walk through. What should the government do? Group of answer choices If people are willing to pay the higher cost for deer friendly highway, it would be allocatively efficient for the government to choose that option over the cheaper one. The government should only consider environmental issues such as the deer habitat if it does not affect the cost of the project. Otherwise, it should go for the cheaper option. The government should always choose the more affordable option regardless of environmental concerns. The government should do its best to assess how much people care about the plight of deer, to see if it's worth going with the more expensive deer friendly highway
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