The Following Data Show the Relationship Between the Number of Drivers

question 65

Multiple Choice

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. $$\begin{array} { c c c } \begin{array} { c } \text { Number of drivers } \\\underline { \text { that leave at 8:00am }}\end{array} & \begin{array} { c } \text { Average commute } \\\underline { \text { time to downtown }}\end{array} & \begin{array} { c } \text { Marginal } \\\underline { \text { Benefit }}\end{array} \\ 100 & 30 \text { minutes } & \$ 10 \\200 & 65 \text { minutes } & \$ 8 \\300 & 110 \text { minutes } & \$ 4 \\400 & 170 \text { minutes } & \$ 3 \\500 & 260 \text { minutes } & \$ 1\end{array}$$
Refer to the information given above.An argument for imposition of a toll rather than using a negotiated solution of the type suggested by the Coase Theorem is that:

• A)this is not an externality problem.
• B)government needs additional revenues.
• C)the external cost is not well defined.
• D)private negotiations among 500 drivers is impractical.

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Definitions:

Role Confusion

Uncertainty about one's place or identity within society or one's personal life.

Delay Of Gratification

The ability to resist the temptation for an immediate reward and wait for a later, often greater, reward.

Stagnation

A period or state of inactivity or lack of growth and development.

Rite Of Passage

An occasion or ritual signifying a crucial phase in an individual's life, notably including birth, reaching adolescence, marriage, and passing away.