Why is it difficult to estimate the costs and benefits of mega products ( e.g. airports,...

Why is it difficult to estimate the costs and benefits of mega products ( e.g. airports, stadiums)?

1. Small scope but large complexity is a double whammy. True or False

2. It is difficult to estimate costs far into the future. True or False

3. Deception may be used in promoting projects. True or False

4. The public good will outweigh the costs. True or False

5. Promoters may be too optimistic or uninformed. True or False

Answer all 5 I'll give a thumbs up

Expert Solution

1. False: For estimating the costs of the aircraft this is not considered to be a reason making it a difficult approach for the calculation because scope is also large and the complexity is also.

2. True: Calculating the costs for the future far is one of the reason making the calculation harder for megaproducts as they don't generate small revenues and thus, future analysis is to be done.

3. True: Promotion and Marketing for mega products is again one of the difficult jobs. Thus, deceptions are used to promote them which makes the analysis of the costs harder for the seller or manufacturer.

4. False: No, it is not true that public good will outweight the cost. The costs for productions of these goods are high and no public good or relations could outweight the cost.

5. True: Again True, the promoters of these megaproducts are too optimistic regarding these products thinking they will earn the profits surely and no loss would be faced by them which thus make the cost analysis even harder.

keosha answered 4 hours ago

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