nn 4. If we assume that 2,000 cars use a highway every day, and an additional vehicle

nn

Transcribed Image Text:

4. If we assume that 2,000 cars use a highway every day, and an additional vehicle on that highway increases travel time by 5 seconds for each of those 2,000 cars, and the opportunity cost of travel time is $0.15 per minute, calculate the marginal external cost of an additional vehicle on that highway. 5. Explain what a congestion tax is, and what the benefits and costs are of implementing a congestion tax. 4. If we assume that 2,000 cars use a highway every day, and an additional vehicle on that highway increases travel time by 5 seconds for each of those 2,000 cars, and the opportunity cost of travel time is $0.15 per minute, calculate the marginal external cost of an additional vehicle on that highway. 5. Explain what a congestion tax is, and what the benefits and costs are of implementing a congestion tax.