Governments and other regulators often finance roads via tolls and other fees paid by motorists. One can view the charge to a motorist as an allocation for the cost of building and maintaining the toll way. Some examples include the New Jersey Turnpike and the “Coastal Highway,” a controlled access, high-speed road link between major cities in Tamil Nadu in India.

Required:
Evaluate the costs and benefits of the following four pricing schemes.
1. A flat charge per vehicle, charged when the vehicle enters the toll way.
2. A flat charge per category of vehicle. That is, there is a different charge for a car, a small truck, and an 18-wheeler.
3. A graduated charge based on the vehicle’s actual weight, paid when the vehicle enters the toll way.
4. A graduated charge based on vehicle weight and distance traveled on the road. This fee requires a tollbooth at both the entrances to and the exits from the toll way.