The following data show the relationship between the number of drivers who leave for work at 8:00 am,their average commute times,and their marginal benefit associated with the commute times.
Refer to the information given above.Suppose a toll is imposed in the following way: leaving between 8 a.m.and 9 a.m.costs $5 per driver,after 9 a.m. ,the toll is zero.The toll __________ because __________.
A) reduces efficiency;citizens are paying for the highway through taxes and through the toll
B) improves efficiency;government now has more tax revenue
C) reduces efficiency;drivers don't change their behavior because $5 is less than the benefit of driving
D) improves efficiency;the highway is no longer treated as having a price of zero
Correct Answer:
Verified
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