The following data show the relationship between the number of drivers who leave for work at 8:00 am,their average commute times,and their marginal benefit associated with the commute times.
Refer to the information given above.The reason drivers would prefer building new roads to a $5 toll to reduce commute times is because:
A) building roads is the only cost-effective solution.
B) they know a toll would not alter commuting behavior.
C) a tax solves the commitment problem.
D) the cost of new roads falls on all taxpayers;the toll only falls on those who use the existing road.
Correct Answer:
Verified
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