The following data show the relationship between the number of drivers who leave for work at 8 a.m., their average commute time, and their marginal benefit of commuting.
$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Number of Drivers } \
\text { Who Leave at 8 a.m. }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Camunute Time }
\end{array} & \begin{array} { c }
\text { Murginal } \
\text { Bemefit }
\end{array} \
\hline 100 & 30 \text { minutes } & \$ 10 \
\hline 200 & 65 \text { mirutes } & \$ 8 \
\hline 300 & 110 \text { minutes } & \$ 4 \
\hline 400 & 170 \text { mirutes } & \$ 3 \
\hline 500 & 260 \text { rinutes } & \$ 1 \
\hline
\end{array}$$ If commuters view highway use as having a price of zero, then one can predict that ________ drivers will leave for downtown at 8:00 a.m.
A)500
B)400
C)300
D)200

Question

The following data show the relationship between the number of drivers who leave for work at 8 a.m., their average commute time, and their marginal benefit of commuting.  
$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of Drivers } \
\text { Who Leave at 8 a.m. }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Camunute Time }
\end{array} & \begin{array} { c } 
\text { Murginal } \
\text { Bemefit }
\end{array} \
\hline 100 & 30 \text { minutes } & \$ 10 \
\hline 200 & 65 \text { mirutes } & \$ 8 \
\hline 300 & 110 \text { minutes } & \$ 4 \
\hline 400 & 170 \text { mirutes } & \$ 3 \
\hline 500 & 260 \text { rinutes } & \$ 1 \
\hline
\end{array}$$ If commuters view highway use as having a price of zero, then one can predict that ________ drivers will leave for downtown at 8:00 a.m.
A)500
B)400
C)300
D)200

Quizplus · Accepted Answer

If commuters perceive the price of highway use as zero, they will continue to use it until the marginal benefit equals zero or is minimized. The table shows that the marginal benefit decreases as more drivers use the highway, but it never reaches zero. Therefore, the maximum number of drivers (500) will leave for downtown at 8:00 a.m., as they are not deterred by increasing commute times or decreasing marginal benefits as long as the perceived cost (price) of highway use is zero.

The Following Data Show the Relationship Between the Number of Drivers