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An article in the Financial Times noted that toll road that connects two counties in Massachusetts was not generating as much toll revenue as predicted. At that time, the toll rate was $8 for a passenger car making a round trip from end to end on the tollway during rush hour. What type of additional information would you need to know in order to determine if the toll should be increased or decreased to maximize revenue?

An article in the Financial Times noted that toll road that connects two counties in Massachusetts was not generating as much toll revenue as predicted. At that time, the toll rate was $8 for a passenger car making a round trip from end to end on the tollway during rush hour. What type of additional information would you need to know in order to determine if the toll should be increased or decreased to maximize revenue?

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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5. An article in the Financial Times noted that toll road that connects two counties in Massachusetts was not generating as much toll revenue as predicted. At that time, the toll rate was $8 for a passenger car making a round trip from end to end on the tollway during rush hour. What type of additional information would you need to know in order to determine if the toll should be increased or decreased to maximize revenue?
Transcribed Image Text:5. An article in the Financial Times noted that toll road that connects two counties in Massachusetts was not generating as much toll revenue as predicted. At that time, the toll rate was $8 for a passenger car making a round trip from end to end on the tollway during rush hour. What type of additional information would you need to know in order to determine if the toll should be increased or decreased to maximize revenue?
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