QUESTION 11The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes totravel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T.Demand for traffic (measure as traffic volume per minute) on this road isT=6,880 -– 70.(1/S).a. Find the equilibrium traffic volume in the absence of any congestion tollI.b. Find the marginal cost function for traffic volume, where cost is expressed as travel timeper mile in minutes.c. Find the optimal level of traffic volume.d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion tollconsists of sitting in the "penalty box" for this period of time.)

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Answered: QUESTION 11 The function that relates…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How expensive public transport is impact on people with low salary ? Graph it.
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