Question 7 Imagine that a state government is considering the construction of a new state office building to consolidate state operations. Its estimate of the total costs and the total benefits of...

Extracted text: Question 7 Imagine that a state government is considering the construction of a new state office building to consolidate state operations. Its estimate of the total costs and the total benefits of building a 4- 6-, 8-or 10-story building is shown in the table below. (All figures are in millions of dollars.) Total Cost Total Benefit Project (S) (S) No building 4-story building 7 8 6-story building 16 23 8-story building 24 28 10-story building 34 31 i. Compute the marginal cost and the marginal benefit of the 4-, 6-, 8-, and 10-story buildings. Should the state build a new office building? If so, what size building and what will be the total benefit, total cost, and net benefit to society? ii.