Improvements at a congestedintersection require thatthe

Chapter , Problem 16-9

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Improvements at a congestedintersection require thatthe government acquire the properties on the fourcorners: two gas stations, a church, and a bank. Con-struction will take a year, and the costs will be shared70% by the state and 30% by the city. Traffic throughthe intersection is mainly commuters, local residents,anddeliveriestoandbylocalbusinesses.Thereissomethrough traffic from other parts of the metropolitanarea.Identify the benefits, disbenefits, and costs thatmust be considered in evaluating this project. Fromthe citys viewpoint, which must be included? Fromthe states viewpoint? What viewpoint shouldbe usedto evaluate this project?

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