The Atlantic City Expressway is a highway that runs from outside Philadelphia to Atlantic City, New Jersey. It is notoriously congested during the summer weekends when many people are driving to the beach about the same time. The marginal private cost for a driver of driving on the Expressway includes I. the cost of gasoline.
II) the cost of increasing congestion for everyone else.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

The marginal private cost for a driver typically includes personal expenses like gasoline, but not the external costs such as increased congestion for others, which is considered a social cost.

The Atlantic City Expressway Is a Highway That Runs from Outside