When infrastructure is publicly owned,it is important to price usage to reflect
A)the cost of rebuild the infrastructure once it is fully depreciated.
B)the incremental profit from the use of the infrastructure.
C)the marginal impact on the cost to society.
D)the market clearing price.

Question

Quizplus · Accepted Answer

Pricing usage of publicly owned infrastructure to reflect the marginal impact on the cost to society is important as it ensures that the cost of using the infrastructure is aligned with the benefit it provides to society. This approach takes into account not only the operating cost and incremental profit but also the externalities and social cost associated with the usage of the infrastructure. It encourages users to consider the full cost of their usage, leading to more efficient and sustainable use of the infrastructure.

When Infrastructure Is Publicly Owned,it Is Important to Price Usage