Problem
Suppose policymakers are considering two potential projects that are mutually exclusive. Should they always pick the one for which the compensating variation is the largest negative number (in other words, the one for which the individual is willing to pay the most)? Why, or why not? If not, is there a way to compare the benefits of these projects using the concept of compensating variation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.