Some highways have one lane;others have two,three,or more.If each lane costs $10 million per kilometre,an economist assumes that the total benefit of a three-lane highway must be _____ million per kilometre.

Question

Quizplus · Accepted Answer

The economist assumes that the cost of each lane is $10 million per kilometre. Therefore, a three-lane highway will cost $30 million per kilometre. The question is asking for the total benefit, not cost. Since multi-lane highways improve traffic flow and can reduce congestion, it can be assumed that the total benefit of a three-lane highway would be greater than $30 million per kilometre. Therefore, the best choice is D, $30 or more.

Some Highways Have One Lane;others Have Two,three,or More