A public toll-road charges a fee. The marginal cost of allowing any given vehicle through the toll
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Question:
A public toll-road charges a fee. The marginal cost of allowing any given vehicle through the toll is the same across all types of vehicles. The price elasticity of demand differs, however, and is observable.
Which price scheme (a, b, or c) would you expect to be the most likely to produce the most revenue per dollar of deadweight loss?
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