Spectrum Economics Challenge 4-Cost Benefit Analysis


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Good morning steemians, the truth I have been quite attracted by the challenges of the good friend @spectrumecons which consist of six challenges focused on the economy. For this challenge we must create some proposals based on cost vs. benefits. Our budget is 5 million dollars and the possible constructions are the following:



• Upgrade the local school
• Upgrade the local hospital
• Improve the local bus service
• Upgrade the local dam
• Build a football stadium

Now, for me based on all the information provided I have completed two constructions, the first to build a football stadium, due to the few fans in the city, around 10% of the entire population, I decided to build it with a medium capacity , this in order to increase that fanaticism and sense of belonging more people will join and the fans will grow progressively. This evidenced personally with the baseball team of my state, few were followers of ours, many supported teams from the capital of the country, but when creating a stadium and give more support to the local team many followed that path and already It is one of the most popular teams in the country. The stadium will have a capacity of 6000 people and its cost would be 3 million dollars, there are currently 1000 football fans in the city, counting that 70% of them attend more the number of tickets for the visiting team would be about 1000 attendees per game to start, but if at least 30% of the remaining inhabitants begin to support the team this number could triple in the next 2 or 3 years, besides this, this building could be used for other things like concerts, and due to that only 10 games would be played per year would really be a gap to plan large events that would fill the population with joy, and with these gains from tickets sold recover part of the investment that would be destined to make improvements to the stadium.


For me this stadium will bring the residents many benefits not only from the recreational point of view, but students will have the necessary facilities to grow in this sport and be able to win a student scholarship for a university and / or professional team. For this same reason it is assumed that the student population will increase, perhaps students from other cities will come to take advantage of the new facilities, which is why my second proposal would be Upgrade the local school of medium capacity which would mean an increase in student enrollment of 60 students, it would cost around 2 million dollars, this would result in the number of empty positions currently standing at 70 places. But obviously with the new stadium, it would have to hire trainers with experiences from other cities and these would bring their children and if they have guaranteed study conditions they would accept the job more quickly. Education and sport that would be my combination to give greater benefits to this city that is growing little by little. I hope that my analysis has pleased you to do it in a simple way to reach a greater amount of public, the more detailed information of the contest where you can find the data you use can be found in the following link.

@luisveco88

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