Question: Suppose the services of a road are subject to congestion

Suppose the services of a road are subject to congestion after 50,000 vehicles per hour enter the road. Assume that it is feasible to price road services on an hourly basis. Use a graph like that drawn in Figure 4.2 to show how the services of the road should be priced per hour when fewer than and more than 50,000 vehicles per hour are expected so as to achieve efficiency.

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  • CreatedAugust 22, 2015
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