The Massachusetts Turnpike is a state toll-road where cars and trucks pay a fee in proportion to the distance they travel and the weight of the vehicle. The road was built with federal funds in the 1960s, but the state must pay for maintenance. Given what youknow about regulation, what do you think the toll charge for a particular car or truckrepresents?

Question

Quizplus · Accepted Answer

The toll charge for a particular car or truck on the Massachusetts Turnpike represents the marginal cost of maintenance. This is because the toll is set in proportion to the distance traveled and the weight of the vehicle, which are factors that directly affect the wear and tear on the road, and thus the cost of maintaining it.

The Massachusetts Turnpike Is a State Toll-Road Where Cars and Trucks