Question

Indicate whether you agree with the following statement, and give your reasons for doing so: "If the beltline surrounding the city of Raleigh were a pure public good, efficiency would require that the price to use the road be zero. However, during rush hour congestion, the road cannot be regarded as a pure public good and a toll should be charged for its use." If an automated vehicle identification system (AVI) were established for residents of the metropolitan area around Raleigh who use the beltline, how would you set tolls to achieve efficient use of the road? The AVI system would allow you to send a bill to each user of the road each month based on miles traveled on the road and the price you charge, which could vary by time of day.


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  • CreatedAugust 22, 2015
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