Author Question: The following diagram shows the effects of increasing traffic along a particular stretch of road. At ... (Read 83 times)

ashley · **on:** May 25, 2020

The following diagram shows the effects of increasing traffic along a particular stretch of road. At first, additional cars have no effect on the traffic speed. But, after a point, additional cars slow down the traffic and thus impose a 'congestion cost' on other car users. Beyond thus point, therefore, the marginal social cost of using the road is greater than the marginal private cost.

Assuming that there are no externalities on the demand-side, what is the socially optimal level of road use?
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joanwhite · **Reply #1 on:** May 25, 2020

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

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