Answer the following concerning highway pricing and traffic, Ask an Expert

Economics

Answer the following concerning highway pricing and traffic volume in the long run.

a) Draw the ATC curve for a 4 lane road and explain why it is U shaped in terms of the road cost effect and the trip cost effect.

b) How is the long run optimum traffic volume determined? Draw a graph and label the axes, the curves, and the long run optimum traffic volume.

c) On the same graph from (b) label the congestion tax that is necessary to achieve the long run optimum traffic volume. Label any new curves that need to be put in the graph.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91233358

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question why does the government create monopoly power via

Question: Why does the government create monopoly power via its patent system, when elsewhere it spends millions trying to prevent the emergence of or regulate monopoly power? The response must be typed, single spaced, m ...

Question new us tax legislation could include a tax credit

Question: New U.S. tax legislation could include a tax credit for the use of alternative energy sources that significantly reduces the cost of using alternative fuels. Explain, in economic terms, how this may impact the ...

Question in addition to economic benefits regional economic

Question: In addition to economic benefits, regional economic integration produces political benefits. By fostering close economic ties between nations, regional economic integration helps foster peace, as illustrated by ...

Quesiton tax ratessuppose taxes are related to income as

Quesiton: (Tax Rates)Suppose taxes are related to income as follows: Income Taxes $1,000 $200 $2,000 $350 $3,000 $450 1. What percentage of income is paid in taxes at each level? 2. Is the tax rate progressive, proportio ...

Question a local business owner tells you economics is

Question: A local business owner tells you economics is wrong because people do not respond to incentives. She tells you that she increased all of her employees' pay by 10 percent and they did not work any harder. Is her ...

Question you are the human resources manager for a famous

Question: You are the human resources manager for a famous retailer and are trying to convince the president of the company to change the structure of employee compensation. Currently, the company's retail sales staff is ...

Question - over the past 50 years the number of hurricanes

Question - Over the past 50 years, the number of hurricanes that have been reported are as follows: 9 times there were 6 hurricanes, 14 times there were 8 hurricanes, 19 times there were 10 hurricanes, and in the remaini ...

Question suppose that the cost function is given by cg 100

Question: Suppose that the cost function is given by: C(g) 100 5g2 (a) Find the fixed and variable cost. (b) Find the marginal cost (c) Find the average cost and the average variable cost. (d) raw the relationship betwee ...

Question in a certain market demand isq 2000 - 100pcannot

Question: In a certain market demand is Q = 2000 - 100P, cannot produce more than 10 units. No other sellers may enter the market. a. Draw the demand and supply curves and find the equilibrium price, quantity, and profit ...

Question during the great recession like any other economic

Question: During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spen ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert