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I figured this out, please refund question if possible. Figure 4.2 Congestible Public Good The marginal cost of allowing additional users to consume the congestible
I figured this out, please refund question if possible.
Figure 4.2 Congestible Public Good The marginal cost of allowing additional users to consume the congestible public good falls to zero after the good is made available to any one user but then rises above zero after nk users are accommodated per hour. Marginal Cost Marginal Cost per User 0 1 N* Number of Consumers per Hour . Suppose the services of a road are subject to congestion after 50,000 vehicles per hour enter the road. Assume that it is feasible to price road services on an hourly basis. Use a graph like that drawn in Figure 4.2 to show how the services of the road should be priced per hour when fewer than and more than 50,000 vehicles per hour are expected so as to achieve efficiency. Figure 4.2 Congestible Public Good The marginal cost of allowing additional users to consume the congestible public good falls to zero after the good is made available to any one user but then rises above zero after nk users are accommodated per hour. Marginal Cost Marginal Cost per User 0 1 N* Number of Consumers per Hour . Suppose the services of a road are subject to congestion after 50,000 vehicles per hour enter the road. Assume that it is feasible to price road services on an hourly basis. Use a graph like that drawn in Figure 4.2 to show how the services of the road should be priced per hour when fewer than and more than 50,000 vehicles per hour are expected so as to achieve efficiencyStep by Step Solution
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