50 people travel from Mississauga to Toronto. The Go Train takes 20 minutes. The average time for a person to reach downtown when driving is t = 100 + 0.5q and it depends on the number of D drivers on the road. a. Give a labelled diagram to compare the non-cooperative solution to the cooperative solution. Label the efficiency loss. The Marginal Time of commuting t' = 100 + D is twice as steep with the same vertical intercepts as the average time of commuting t = 100 + 0.5D. b. What is the total time for all 50 people if they behave non - cooperatively? What is the total time if they behave cooperatively. c. Use your diagram to show how a highway toll (per unit tax) could be used to correct this efficiency loss.
50 people travel from Mississauga to Toronto. The Go Train takes 20 minutes. The average time for a person to reach downtown when driving is t = 100 + 0.5q and it depends on the number of D drivers on the road.
a. Give a labelled diagram to compare the non-cooperative solution to the cooperative solution. Label the efficiency loss. The Marginal Time of commuting t' = 100 + D is twice as steep with the same vertical intercepts as the average time of commuting t = 100 + 0.5D.
b. What is the total time for all 50 people if they behave non - cooperatively? What is the total time if they behave cooperatively.
c. Use your diagram to show how a highway toll (per unit tax) could be used to correct this efficiency loss.
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