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Figure: Traffic Lights in Plymouth
-(Figure: Traffic Lights in Plymouth)Use Figure: Traffic Lights in Plymouth.Plymouth has 1,000 residents.Each of the residents has the same individual marginal benefit per traffic light.If the town's population doubles and the new residents share the identical individual marginal benefit of the existing residents,the socially efficient quantity of traffic lights will:
A)stay the same.
B)fall.
C)rise.
D)fall to zero.

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Use the following to answer questions:
Figure: Traffic Lights in Plymouth 
-(Figure: Traffic Lights in Plymouth)Use Figure: Traffic Lights in Plymouth.Plymouth has 1,000 residents.Each of the residents has the same individual marginal benefit per traffic light.If the town's population doubles and the new residents share the identical individual marginal benefit of the existing residents,the socially efficient quantity of traffic lights will:
A)stay the same. 
B)fall. 
C)rise. 
D)fall to zero.

Quizplus · Accepted Answer

The socially efficient quantity of traffic lights will rise because the total benefit to the community increases as the population (and thus the number of people benefiting from each traffic light) doubles, assuming marginal costs remain constant.

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