There are 240 automobile drivers per minute who are considering using the E-ZPass lanes of the Interstate 78 toll bridge
a. If the price of crossing equals a driver's marginal private cost-the price in a competitive market-how many cars per minute will cross? Which groups will cross?
b. In the social optimum, which groups of drivers will cross? That is, which collection of groups crossing will maximize the sum of the drivers' utilities?
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Related Book For
Chapter # 17- Property Rights, Externalities, Rivalry, and Exclusion
Section: Section 6.1
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Question Posted: December 29, 2017 01:07:29