Author Question: Drivers are charged a price to use a tollway. But even tollways, such as the Tri-State Tollway near ... (Read 64 times)

humphriesbr@me.com · **on:** Jun 29, 2018

Drivers are charged a price to use a tollway. But even tollways, such as the Tri-State Tollway near Chicago, become heavily congested during the morning and evening rush hours. Thus,

A) the rush hour represents a surplus of cars.
B) your textbook author is wrong in claiming congestion is caused by zero prices.
C) higher tolls are required during rush hours to reduce congestion.
D) growing population is indeed the problem.

Question 2

The schedule of tolls capable of maximizing the net revenue of a bridge owner

A) has no relationship to the cost of constructing the bridge.
B) is the highest anyone will pay rather than forgo the opportunity to cross the bridge.
C) varies proportionately to the cost of constructing the bridge.
D) will be higher than the corresponding tolls for a tunnel, because tunnel construction costs must be sunk rather than elevated.