What is net social benefit resulting from added task force


Problem

Approximately $1.2 billion dollars in illicit drugs are smuggled into Australia by sea. While most of the money made from the illicit drugs sales leave Australia, around 20% of the money remains in the country. The Australian government has decided to add a specialised task force to the current government program to tackle these crime rings. This will increase the cost of the program from $2.5 million per year to $5.5million per year. The additional resources are expected to reduce drug related violence and healthcare costs by a total of $3 million per year.

What is the net social benefit resulting from the added specialised task force? ..... $ million. Provide a detailed explanation of the considerations in your decision.

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Microeconomics: What is net social benefit resulting from added task force
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