Officials at Washington, DC’s Metro subway system have debated ways to reverse a decline in ridership. Currently, the system’s costs significantly exceed its revenues, resulting in an operating deficit that has to be covered by contributions from the local governments the system serves. One proposal to increase ridership is to run the same number of subway trains during off-peak hours as the system currently does during peak hours. A member of the system’s board of directors raised the possibility that “the marginal cost of running the additional service exceeds the marginal revenue of the new people we’re getting.” Briefly explain which of the following correctly characterizes this member’s statement about the likely results of increasing the number of trains run during off-peak hours. 

i. The Metro’s revenue will increase, but its operating deficit will decline. 

ii. The Metro’s revenue and operating deficit will both decline. 

iii. The Metro’s revenue and operating deficit will both increase. 

iv. The Metro’s revenue will decline, but its operating deficit will increase.