A Research Study Estimates That the Direct Cost of Constructing

Multiple Choice

A research study estimates that the direct cost of constructing a bridge connecting two boroughs in a city is $10 million. The revenue from the tolls on the bridge is estimated to be $8 million. The dollar value of pollution from the construction is estimated to be $5 million but the dollar value of the benefit to the city's residents is calculated to be $20 million. The construction of the bridge is most likely to be undertaken by:

A) the government because revenues exceed costs.
B) the government because the total benefits exceed total costs.
C) a private firm because the total benefits exceed total costs.
D) a private firm because revenues exceed direct costs.
E) a private firm because the revenues exceed indirect costs.