Which of the following statements most fully explains a driver's decision, as discussed in the Case in Point on Changing Lane and Raising Utility, to pay to use a highway express lane?
A) The total utility of using the lane must be greater than zero.
B) The marginal utility per dollar on using the lane must be greater than zero.
C) The marginal utility per dollar spent on the lane must be equal to the price per gallon of gasoline plus associated driving costs.
D) The marginal utility per dollar spent on the lane must be greater than the marginal utility per dollar spent on the next best alternative.

Question

Quizplus · Accepted Answer

The driver's decision is based on comparing the marginal utility per dollar spent on the lane to the marginal utility per dollar spent on the next best alternative. The driver will choose to use the express lane only if the marginal utility per dollar spent on the lane is greater than the marginal utility per dollar spent on the next best alternative.

Which of the Following Statements Most Fully Explains a Driver's