Solved

The Following Data Show the Relationship Between the Number of Drivers

Question 92

Multiple Choice

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.  Number of drivers  that leave at 8:00am  Average commute  time to downtown  Marginal  Benefit 10030 minutes $1020065 minutes $8300110 minutes $4400170 minutes $3500260 minutes $1\begin{array} { c c c } \begin{array} { c } \text { Number of drivers } \\\underline { \text { that leave at 8:00am }}\end{array} & \begin{array} { c } \text { Average commute } \\\underline { \text { time to downtown }}\end{array} & \begin{array} { c } \text { Marginal } \\\underline { \text { Benefit }}\end{array} \\ 100 & 30 \text { minutes } & \$ 10 \\200 & 65 \text { minutes } & \$ 8 \\300 & 110 \text { minutes } & \$ 4 \\400 & 170 \text { minutes } & \$ 3 \\500 & 260 \text { minutes } & \$ 1\end{array}
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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents