One way to allocate road space in a congested city would be to charge drivers to use the roads. One reason why this policy is likely to result in a more efficient allocation of resources is because A. incentives to build new roads would be higher. B. only higher-income drivers would choose to use the roads. C. road use would be rationed to drivers who benefit from it the most. D. the government would raise a large amount of revenue from drivers.

One way to allocate road space in a congested city would be to charge drivers to use the roads. One reason why this policy is likely to result in a more efficient allocation of resources is because A. incentives to build new roads would be higher. B. only higher-income drivers would choose to use the roads. C. road use would be rationed to drivers who benefit from it the most. D. the government would raise a large amount of revenue from drivers.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter7: Linear Regression

Section: Chapter Questions

Problem 1C: Alumni donations are an important source of revenue for colleges and universities. If administrators...

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Given the scope of each project, what other costs and/or benefits might not be fully captured in the tables above? That is, a cost and/or benefit that might not be accurately reduced to dollar terms.
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In a developing country, two alternatives are under consideration for delivering water from a mountainous area to an arid area in the country’s southern region. A coated heavy-gauge plastic pipeline can be installed,with pumps spaced appropriately along the pipeline. Alternatively, a canal can be built; however, it will have greater water loss than the pipeline, due to evaporation and poaching along the canal route. To compensate for the water loss, the canal will have a greater carrying capacity than the pipeline. It is estimated it will cost $125 million to install the pipeline. Major replacements are planned every 15 years at a cost of $10 million. Pumping and other annual operating and maintenance costs are estimated to be $5million. The canal will cost $200 million to construct; its annual operating and maintenance costs are anticipated to be $1 million. Major upgrades of the canal are anticipated every 10 years, at a cost of $5 million. Based on a five percent MARR and an…