User fees may reduce the net benefits that users derive from new infrastructure in two ways ________ and _____________.
A) By reducing purchasing power; by motivating them to cut back on use
B) By increasing the quality of the service; by decreasing the length of time the service will be available
C) By decreasing the quality of service; by increasing the quantity of services
D) By removing positive externalities; by eliminating the free rider problem

Question

Quizplus · Accepted Answer

User fees reduce the purchasing power of users, meaning they have less money to spend on other goods and services. This can reduce the overall benefit they derive from the new infrastructure. Additionally, user fees may motivate users to cut back on their use of the infrastructure, further reducing the net benefits they derive.

User Fees May Reduce the Net Benefits That Users Derive