In the long run, the supply of road space is not fixed. In identifying the socially efficient level of road construction, the authorities need to find the point at which

Question

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The socially efficient level of road construction is found where the Marginal Social Benefit (MSB) of construction equals the Marginal Social Cost (MSC). This balance ensures that the resources are allocated efficiently, maximizing societal welfare.

In the Long Run, the Supply of Road Space Is