After Many Years,a Small Community Builds a Toll Road but Discovers

question 137

Multiple Choice

After many years,a small community builds a toll road but discovers that it is not used very much.If it wishes for the road to be used at the socially optimal level,the community should:

• A)set the toll higher.
• B)set the toll equal to $1.
• C)set the toll lower.
• D)build another toll road.

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Definitions:

Continued Losses

Persistent financial deficits experienced by a business over multiple periods, indicating an inability to generate sufficient revenue to cover expenses.

Industry

Denotes a specific group of companies or businesses that produce or sell similar products and services.

Consumer Sovereignty

The concept that consumers' preferences and decisions dictate the production and sale of goods and services in an economy.

Legislation

Laws and statutory requirements passed by a legislative body or the process involved in creating these laws.