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A particular road is used by N drivers each day. Each driver obtains a benefit v from the journey and incurs a cost c(N) that increases with the number of drivers on the road due to congestion. Suppose that the cost incurred is given by c(N) a + bN, for some positive numbers a, b. If the agent decides not to use the road, they receive 0. You may assume throughout that the number of drivers N can be any real number (rather than an integer). Each driver uses the road at most once. (ii) Show that the number of drivers that join the road is V - a Ne =

A particular road is used by N drivers each day. Each driver obtains a benefit v from the journey and incurs a cost c(N) that increases with the number of drivers on the road due to congestion. Suppose that the cost incurred is given by c(N) a + bN, for some positive numbers a, b. If the agent decides not to use the road, they receive 0. You may assume throughout that the number of drivers N can be any real number (rather than an integer). Each driver uses the road at most once. (ii) Show that the number of drivers that join the road is V - a Ne =

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A particular road is used by N drivers each day. Each driver obtains a benefit v from the journey and incurs a cost c(N) that increases with the number of drivers on the road due to congestion. Suppose that the cost incurred is given by c(N) = a + 6N, for some positive numbers a, b. If the agent decides not to use the road, they receive 0. You may assume throughout that the number of drivers N can be any real number (rather than an integer). Each driver 6, uses the road at most once. (ii) Show that the number of drivers that join the road is а Ne
Transcribed Image Text:A particular road is used by N drivers each day. Each driver obtains a benefit v from the journey and incurs a cost c(N) that increases with the number of drivers on the road due to congestion. Suppose that the cost incurred is given by c(N) = a + 6N, for some positive numbers a, b. If the agent decides not to use the road, they receive 0. You may assume throughout that the number of drivers N can be any real number (rather than an integer). Each driver 6, uses the road at most once. (ii) Show that the number of drivers that join the road is а Ne
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