Under What Circumstances Would It Be Efficient to Charge a Positive

question 69

Multiple Choice

Under what circumstances would it be efficient to charge a positive price for drivers to cross the Champlain Bridge in Montreal or the Lion's Gate Bridge in Vancouver?

• A)when it is possible to exclude drivers from the bridge
• B)when it is not possible to exclude drivers from the bridge
• C)when the sum of marginal benefits to all drivers is positive
• D)when the marginal private benefit to the last driver is greater than the marginal private cost to that driver
• E)when congestion on the bridge means that the marginal cost of providing access to one more driver is positive

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