If a good is congestible,then _____.
A)the optimal sharing group is a the national level
B)the optimal club size is where marginal reduction in cost per user is minimized
C)some congestion is optimal
D)marginal costs are constant for any possible output level

Question

Quizplus · Accepted Answer

If a good is congestible, it means that the consumption of one user affects the utility or cost of other users. In such cases, total congestion cannot be eliminated completely, but some level of congestion is considered optimal. This means that choice C is the best answer. Choice A is incorrect because optimal sharing group depends on the specific nature of the good and the level of congestion. Choice B is incorrect because the optimal club size depends on the level of congestion and the size and preferences of users, not just on the reduction in cost per user. Choice D is incorrect because marginal costs are not constant in the case of congestible goods.

If a Good Is Congestible,then _____