A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?
A)For some consumers, the toll was less than the opportunity cost of the time they would have spent in traffic.
B)For some consumers, the toll was more than the opportunity cost of the time they would have spent in traffic.
C)No consumers would find this toll worth the time saved in traffic.
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

The opportunity cost of time varies among consumers. For some, the toll may be less than the value they place on the time saved, while for others, it may be more.

A Variable Toll on a Road in Washington Reached a High