To determine the value of a bridge to members of a community, why is asking them directly not a reliable way of measuring the benefits and costs? Question 11 options: Those who stand to gain have an incentive to tell the truth. Answers to the survey questions relating to cost will always be downwardly biased. Those who stand to lose have an incentive to exaggerate their true costs. Not everyone asked will be using the bridge.

The benefit or cost being caused by a producer not received or incurred financially by the producer…

Answered: o determine the value of a bridge to…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 17.6IP

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To determine the value of a bridge to members of a community, why is asking them directly not a reliable way of measuring the benefits and costs?

Question 11 options:

	Those who stand to gain have an incentive to tell the truth.
	Answers to the survey questions relating to cost will always be downwardly biased.
	Those who stand to lose have an incentive to exaggerate their true costs.
	Not everyone asked will be using the bridge.

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