Question: 1. How does a city's decision to assess substantial fines on rail operators that persistently generate traffic congestion affect the supply curve for rail services
1. How does a city's decision to assess substantial fines on rail operators that persistently generate traffic congestion affect the supply curve for rail services within the city?
2. Why do you think that the federal government requires rail operators to mount expensive horns and sound them - at prescribed decibel levels- at all street crossings? (Hint: what significant negative spillovers can a train create at a street crossing?)
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