A route in the city has trains that depart from station every 20 minutes. It takes a train 40 minutes to make a trip from the station to its destination. For commuters, shorter trips are considered better. Suppose that one such train with 200 commuters on it is about to depart when an additional commuter (who is running slightly late) blocks the doors in order to get on the train, which delays the train by 15 seconds. If this commuter had chosen not to block the train doors, they would have to catch the next train after this one. Question: (Please show the detailed calculation process) What is the private marginal gain of the commuter who barges on the train? What is the marginal spillover effect to all the commuters on the train in terms of travel time? What is the change in the total travel time to all the commuters on the train?

A route in the city has trains that depart from station every 20 minutes. It takes a train 40 minutes to make a trip from the station to its destination. For commuters, shorter trips are considered better. Suppose that one such train with 200 commuters on it is about to depart when an additional commuter (who is running slightly late) blocks the doors in order to get on the train, which delays the train by 15 seconds. If this commuter had chosen not to block the train doors, they would have to catch the next train after this one. Question: (Please show the detailed calculation process) What is the private marginal gain of the commuter who barges on the train? What is the marginal spillover effect to all the commuters on the train in terms of travel time? What is the change in the total travel time to all the commuters on the train?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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