In the absence of the negative externality from each individual's contribution to road congestion, roads would not be congested (aside from congestion caused by accidents).
Answer the following statement true (T) or false (F)
False
Rationale: Just as the optimal level of pollution is not zero -- the optimal amount of road congestion is not zero.
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What is the economic variable that guides the invisible hand?
What will be an ideal response?
A cartel's marginal cost curve is the
a. highest of all the individual firms' marginal cost curves b. lowest of all the individual firms' marginal cost curves c. horizontal sum of all the individual firms' marginal cost curves d. average of all the individual firms' marginal cost curves e. product of all the individual firms' marginal cost curves
A positive (non-zero) price for a good means there is a surplus of that good
a. True b. False Indicate whether the statement is true or false
In pure competition, price is determined where the industry:
A. average total cost equals total variable costs. B. total cost is greater than total revenue. C. demand and supply curves intersect. D. demand intersects the firm's marginal cost curve.