How does the benefit to consumers compare to cost of project

Reference no: EM131134661

Willingness to Pay for New Airport Gates. Your city is considering an airport-expansion project that would increase the number of airport gates and allow additional airlines to serve your city. According to a recent report, the additional competition made possible by the new gates would decrease the average airline fare from $220 to $200 and increase the number of passengers from 400 to 600 per day. The city would borrow money to finance the project, and the daily payment required to pay off the loan over 20 years would be $8,100. How does the benefit to consumers compare to the cost of the project?

Reference no: EM131134661

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