After many years, a small community builds a toll road but discovers it is little used. If it wishes the road to be used at the socially optimal level, the community should:
A) set the toll higher.
B) set the toll equal to $1.
C) set the toll lower.
D) build another toll road.

Question

Quizplus · Accepted Answer

Setting the toll lower would encourage more usage of the road, moving towards the socially optimal level of usage.

After Many Years, a Small Community Builds a Toll Road