1. Higher gas tax and road tolls can fund infrastructure

Explain how a rise in the gas tax and a road toll would enable the transportation infrastructure to be officially maintained. A rise in the gas tax and a road toll would enable the transportation infrastructure to be efficiently maintained if the two charges _____.

A. Make the marginal private benefit road use equal to the marginal social benefit, and if the revenue raised provides the quantity of roads at which MSC = MSB

B. Maximize the Ontario Ministry of Transportation budget.

C. Make the marginal private cost of road use equal to the marginal social cost, and if the revenue raised provides the quantity of roads at which MSC = MSC

D. Eliminate the externality that arises from road use and the revenue raised provides the quantity of roads at which MC = MSB