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3. What kind of problems does the government face when trying to perform a benefit-cost analysis...

3. What kind of problems does the government face when trying to perform a benefit-cost analysis of whether and/or how much of a public project to produce?   
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Answer #1

we know that

it is difficult to assess the total benefits derived from a public project as it is difficult in practice to assess the true benefits and costs , but the government must assess the benefits in term of social benefit derived and costs in terms of negative externalities of the public of such projects , the government must make an educated guess appropriately in order take an investment decision by assessing this externalities and benefits associated with the public good  

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