Nina really hates the traffic on her morning commute. The local council just built a new cycle lane which goes past Nina's office. Therefore, Nina decides that she will cycle to work instead of driving. Which of the following statements are true: Nina choosing to drive to work is a private decision and has no external benefits. There would be no quantifiable benefits for other commuters from Nina's decision to cycle to work. Nina should choose to cycle to work if her marginal private benefits are greater than her marginal private costs. There is an external benefit associated with Nina's decision to cycle to work.

Nina really hates the traffic on her morning commute. The local council just built a new cycle lane which goes past Nina's office. Therefore, Nina decides that she will cycle to work instead of driving. Which of the following statements are true: Nina choosing to drive to work is a private decision and has no external benefits. There would be no quantifiable benefits for other commuters from Nina's decision to cycle to work. Nina should choose to cycle to work if her marginal private benefits are greater than her marginal private costs. There is an external benefit associated with Nina's decision to cycle to work.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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