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The Following Data Show the Relationship Between the Number of Drivers

Question 84

Multiple Choice

The following data show the relationship between the number of drivers who leave for work at 8:00 a.m., their average commute time, and their marginal benefit of commuting.  Number of Drivers  Who Leave at 8 am  Average  Commute Time  Marginal  Benefit 10030 minutes $1020065 minutes $8300110 minutes $4400170 minutes $3500260 minutes $1\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of Drivers } \\\text { Who Leave at } 8 \text { am }\end{array} & \begin{array} { c } \text { Average } \\\text { Commute Time }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Benefit }\end{array} \\\hline 100 & 30 \text { minutes } & \$ 10 \\\hline 200 & 65 \text { minutes } & \$ 8 \\\hline 300 & 110 \text { minutes } & \$ 4 \\\hline 400 & 170 \text { minutes } & \$ 3 \\\hline 500 & 260 \text { minutes } & \$ 1 \\\hline\end{array} If there is no charge to use the highway, then one would expect that ______ the socially optimal number of drivers will leave at 8:00 a.m. because ______.


A) more; each driver's use of the highway imposes an external cost on other drivers by increasing the commute time
B) more; the social marginal benefit of using the highway is greater than the private marginal benefit
C) less; each driver's use of the highway imposes an external cost on other drivers by increasing the commute time
D) less; the private marginal benefit of using the highway is greater than the social marginal benefit

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