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Suppose you are a city planner. The city needs to upgrade the landfill site and has two sites it is considering for the plan. The
Suppose you are a city planner. The city needs to upgrade the landfill site and has two sites it is considering for the plan. The site 1) has been owned by the city for five years and has paid $100,000 for it. The current market value of the landfill is $200,000. Site 2 is land the city would have to buy for $150,000. As a planner for the city, which site would you recommend? Assume that site A and B both give the same benefits in terms of use as the landfill site (and all other uses).
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