1. The table below describes traffic on a congestible freeway. Plot and label the marginal social cost (MC), average private cost (AC), and demand (D) curves on the provided graph paper. T refers to the number of cars on the freeway. T $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18 $ 19 $ 20 $ 21 $ 22 $ 23 $ 24 $ 25 $ MC 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.20 $ 3.40 $ 3.60 $ 3.80 $ 4.00 $ 4.20 $ 4.40 $ 4.60 $ 4.80 $ 5.00 $ 5.20 $ 5.40 $ 5.60 $ 5.80 $ 6.00 $ 6.20 $ 6.40 $ 6.60 $ 6.80 $ 7.00 $ a) What is the equilibrium level of traffic? b) What is the socially optimal level of traffic? AC 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.10 $ 3.20 $ 3.30 $ 3.40 $ 3.50 $ 3.60 $ 3.70 $ 3.80 $ 3.90 $ 4.00 $ 4.10 $ 4.20 $ 4.30 $ 4.40 $ 4.50 $ 4.60 $ 4.70 $ 4.80 $ 4.90 $ 5.00 $ D 6.50 6.40 6.30 6.20 6.10 6.00 5.90 5.80 5.70 5.60 5.50 5.40 5.30 5.20 5.10 5.00 4.90 4.80 4.70 4.60 4.50 4.40 4.30 4.20 4.10 4.00 Label it Tea on the chart. Label it Topt on the chart.

1. The table below describes traffic on a congestible freeway. Plot and label the marginal social cost (MC), average private cost (AC), and demand (D) curves on the provided graph paper. T refers to the number of cars on the freeway. T $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18 $ 19 $ 20 $ 21 $ 22 $ 23 $ 24 $ 25 $ MC 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.20 $ 3.40 $ 3.60 $ 3.80 $ 4.00 $ 4.20 $ 4.40 $ 4.60 $ 4.80 $ 5.00 $ 5.20 $ 5.40 $ 5.60 $ 5.80 $ 6.00 $ 6.20 $ 6.40 $ 6.60 $ 6.80 $ 7.00 $ a) What is the equilibrium level of traffic? b) What is the socially optimal level of traffic? AC 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.10 $ 3.20 $ 3.30 $ 3.40 $ 3.50 $ 3.60 $ 3.70 $ 3.80 $ 3.90 $ 4.00 $ 4.10 $ 4.20 $ 4.30 $ 4.40 $ 4.50 $ 4.60 $ 4.70 $ 4.80 $ 4.90 $ 5.00 $ D 6.50 6.40 6.30 6.20 6.10 6.00 5.90 5.80 5.70 5.60 5.50 5.40 5.30 5.20 5.10 5.00 4.90 4.80 4.70 4.60 4.50 4.40 4.30 4.20 4.10 4.00 Label it Tea on the chart. Label it Topt on the chart.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 43P: A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city....

See similar textbooks

Similar questions

What is the difference between private costs and social costs?
2. Describe the attributes of information quality and how they impact transportation decision making.
6. Water carriers played a dominant role in the transportation system of the United States in the 18th and 19th centuries. Why has their relative position declined during the 20th century? Are they still an important component of the total transportation system? Why or why not? 7. What would be the impact of higher fuel charges on the water carrier industry? Provide a rationale for raising their user charges.
1. The table below describes traffic on a congestible freeway, Plot and label the marginal social cost (MC), average private cost (AC), and demand (D) curves on the provided graph paper. T refers to the number of cars on the freeway. $7.50 $7.25 $7.00 $6.75 $6.50 56.25 $6.00 55.75 $5.50 55.25 $5.00 $4.75 $4.50 $4.25 $4.00 53.75 $3.50 53.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 50.75 $0.50 $0.25 S 0 T 1 Ś $ S 3 $ 4 $ 1 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18 $ 19 $ 20 $ 21 $ 22 $ 23 $ 24 $ 25 $ MC 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.20 $ 3.40 $ 3.60 $ 3.80 $ 4.00 $ 4.20 $ 4.40 Ś 4.60 $ 4.80 $ 5.00 $ 5.20 Ś 5.40 $ 5.60 $ 5.80 $ 6.00 $ 6.20 $ 6.40 $ 6.60 $ 6.80 $ 7.00 $ AC 3.00 $ 3.00 $ 3.00 Ś 3.00 $ 3.00 $ 3.00 $ 3.10 $ 3.20 S 3.30 S 3.40 S 3.50 $ 3.60 3.70 $ 3.80 $ 3.90 $ 4.00 $ 4.10 S 4.20 $ 4.30 $ $ 4.50 $ 4.60 $ 4.70 $ 4.80 $ 4.90 $ 5.00 $ D 6.50 6.40 a) What is the equilibrium level of traffic? b) What is the socially optimal level of…
1. Discuss the role of transportation information and how it supports network visibility, control, and service consistency. 2. Describe the attributes of information quality and how they impact transportation decision making. 3. How can a company facilitate a smooth and timely implementation of a TMS?
Suppose that total costs (TC) double for each project listed in the table below. Cost-Benefit Analysis for a National Highway Construction Project (in Billons) (2) Total Cost of Project (3) Marginal (4) Total Benefit $0 200 (5) Marginal Benefit (1) Plan No new construction A: Widen existing highways B: New 2-1ane highways C: New 4-lane highways D: New 6-1ane highways (6) Mat Benefit $ 0 150 Cost 50 $50 $ 200 140 90 350 150 210 230 240 100 470 120 620 380 580 110 -40 Which project(s) is (are) now economically viable? O Plan A only O Plans C and D only O Plans B and C Plans A and B only O None of the projects are economically viable.
Explain how balancing a Transportation Problem If Total Supply Is Less Than Total Demand
1. Refer to the table below. Emissions (tons/month) 10 6. Marginal Abatement Cost 15 30 7 50 70 100 120 150 3 185 230 290 1 01 a) The firm faces an emissions charge of $100 per ton/month. If the fim chooses to emit 0 tons/month what is the firm's total cost? b) The firm faces an emissions charge of $100 per ton/month. At what level of emissions does the firm minimize total abatement cost? c) The firm faces an emissions charge of $100 per ton/month. What is the firm's total cost with optimal choice? d) If the firm faced an emissions charge of $150 per ton/month, at what level of emissions does the firm minimize total abatement cost? e) If a regulatory agency simply mandated that the firm could emit a maximum of 5 tons/month and there were no emission charges, what would be the firm's total cost? f) If the firm faced an abatement subsidy of $100 per ton/month, what level of emissions would a firm choose? g) If the firm faced an abatement subsidy of$100 per ton/month, what would be the…
15- A company that spends a huge amount of money to treat their waste and reduce a negative impact to the society ______. a. Increases their internal costs b. Decreases their external costs c. Decreases their internal costs d. Causes no change
Project Repair highways Build new highways Build a new bridge Build a new tunnel Expand existing airport Total Cost (in millions) $100 $100 $100 $100 $100 Total Benefit (in millions) $80 $90 $140 $115 $130 This table shows the costs and benefits for some new projects that a local government is considering. Based on these costs and benefits, which project should the government select? O Build new highways O Expand existing airport O Build a new bridge O Build a new tunnel O Repair highways
(Figure: Toxic Waste) From the graph, external cost per ton of toxic waste would be Price ($ per ton) 2222288822 200 180 160 140 120 100 8 80 80 40 20 0 $60. $70. $80. $90. 10 20 30 0 40 50 GO 70 80 90 100 110 120 Quantity (tons of toxic waste)
sub Generalized costs Charge 0 MPCLRT MSCLRT Automobile MSCC both Q* and Q+ neither of these are optimal Q* MPCC Generalized costs Subsidy Q 0 Light rapid transit What is the optimal traffic volume without externality considerations?