Business, 16.03.2020 18:56 gracebuffum
Suppose there are 3 potential users of a freeway: Mr. 1, Mr. 2, and Mr. 3. The cost of the best alternative route for each commuter is as follows:
Commuter Alternate Cost (ga)
Mr.1 $7
Mr.2 $5
Mr.3 $3
The average cost AC of using the freeway (i. e., the cost per car) as a function of traffic volume T is as follows:
T Average Cost (AC)
1 $2
2 $5
3 $9
Using this information, answer the following questions:
a) Find the equilibrium allocation of traffic between the freeway and alternate routes.
b) Compute the total commuting cost for all commuters for the following four allocations of traffic. Total cost is the cost incurred by freeway users plus the cost incurred by commuters who use their alternate routes. (Hint: Remember the definition of AC, while carrying out your calculations.)
On freeway Nobody On alternate routes
nobody Mr. 1, Mr. 2, Mr. 3
Mr. 1 Mr. 2, Mr. 3
Mr. 1, Mr. 2 Mr. 3
Mr. 1, Mr. 2, Mr. 3 nobody
c) Remember that the socially optimal allocation of traffic between the freeway and alternate routes is the one that minimizes total commuting cost for all commuters. Based on your answer to (b), which allocation is socially optimal? How does total cost at the optimum compare to total cost at the equilibrium? (Note that you don't need to use an MC curve to get the answer to this question.)
Answers: 1
Business, 21.06.2019 17:10, hartzpeyton136
Which term refers to the amount of products generated divided by the inputs necessary to create that output? a. performance b. industry ranking c. productivity d. organizational performance e. organizational effectiveness
Answers: 1
Business, 22.06.2019 01:50, mattstudy305
Which statement below best describes george waring's approach to solving the problems of water-borne illness? a. waring is going with his "gut," because he believes that instincts and emotions are the best guides for action. b. waring efficiently and thoroughly lays out the case for why the problems are too large and overwhelming to be solved: people should just move out of cities back to their farms. c. waring has gathered the testimonies of people who live in densely populated areas in order to learn how they themselves have solved their problems. d. waring exhibits the industrial age's increased respect for and reliance on science and the scientific method.
Answers: 1
Business, 22.06.2019 05:50, salvadorperez26
Match the steps for conducting an informational interview with the tasks in each step.
Answers: 1
Suppose there are 3 potential users of a freeway: Mr. 1, Mr. 2, and Mr. 3. The cost of the best alte...
Mathematics, 13.05.2021 03:30
History, 13.05.2021 03:30
Biology, 13.05.2021 03:30
Mathematics, 13.05.2021 03:30
Mathematics, 13.05.2021 03:30