The per-day demand for use of a 130 km long toll highway that bypasses a heavily populated urban area is P = 100 - 2Q during peak traffic periods and shifts to P = 40 - Q during off-peak hours, where Q is the number of cars (in thousands) and P is the toll in dollars. The marginal congestion cost of using the toll highway is MC = 10 + 0.5Q. What is the off-peak price for the toll road? %3D %3D %3D $46 $25 $35 $50 $60 $28

The per-day demand for use of a 130 km long toll highway that bypasses a heavily populated urban area is P = 100 - 2Q during peak traffic periods and shifts to P = 40 - Q during off-peak hours, where Q is the number of cars (in thousands) and P is the toll in dollars. The marginal congestion cost of using the toll highway is MC = 10 + 0.5Q. What is the off-peak price for the toll road? %3D %3D %3D $46 $25 $35 $50 $60 $28

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 4DQ

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