There is a road between the suburbs and downtown. The road is congested at rush hour, so each additional driver slows all of the other drivers down. In this question, we will calculate the cost of this negative externality. For simplicity, ignore all of the costs of using the road other than the cost of time. Assume that people value their time at $6 per hour (that is, $0.10 per minute). If 121 people use the road at rush hour, the trip takes 37 minutes. If one additional person enters the road, everyone would have to slow down and the trip would take one more minute for everyone. What is the monetary value of the time-loss that the additional driver imposes on the other drivers already on the road? (Round your response to 1 decimal place, and do not include a dollar sign.)
There is a road between the suburbs and downtown. The road is congested at rush hour, so each additional driver slows all of the other drivers down. In this question, we will calculate the cost of this negative externality. For simplicity, ignore all of the costs of using the road other than the cost of time. Assume that people value their time at $6 per hour (that is, $0.10 per minute). If 121 people use the road at rush hour, the trip takes 37 minutes. If one additional person enters the road, everyone would have to slow down and the trip would take one more minute for everyone. What is the monetary value of the time-loss that the additional driver imposes on the other drivers already on the road? (Round your response to 1 decimal place, and do not include a dollar sign.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![There is a road between the suburbs and downtown. The road is congested at rush hour, so each.
additional driver slows all of the other drivers down. In this question, we will calculate the cost of
this negative externality.
For simplicity, ignore all of the costs of using the road other than the cost of time. Assume that
people value their time at $6 per hour (that is, $0.10 per minute).
If 121 people use the road at rush hour, the trip takes 37 minutes. If one additional person enters
the road, everyone would have to slow down and the trip would take one more minute for
everyone.
What is the monetary value of the time-loss that the additional driver imposes on the other
drivers already on the road? *
(Round your response to 1 decimal place, and do not include a dollar sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25dbf15a-ca46-4cf2-ac1b-485e18c710a0%2F9b88f8e4-6a81-4a47-8144-47c7defc0ef0%2F1vu5nl8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:There is a road between the suburbs and downtown. The road is congested at rush hour, so each.
additional driver slows all of the other drivers down. In this question, we will calculate the cost of
this negative externality.
For simplicity, ignore all of the costs of using the road other than the cost of time. Assume that
people value their time at $6 per hour (that is, $0.10 per minute).
If 121 people use the road at rush hour, the trip takes 37 minutes. If one additional person enters
the road, everyone would have to slow down and the trip would take one more minute for
everyone.
What is the monetary value of the time-loss that the additional driver imposes on the other
drivers already on the road? *
(Round your response to 1 decimal place, and do not include a dollar sign.)
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