Generalized costs Charge = MPCLRT MSCLRT 2* MSC MPCC Automobile What is the optimal traffic volume with externality considerations? Q+ both Q and Q+ O neither of these are optimal Q1 0 Light rapid transit Generalized costs Subsidy

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 5CQ
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Generalized costs
Charge-
MPCLRT=MSCLRT
MSCC
Q*
Q1 0
MPCC
Automobile
Light rapid transit
What is the optimal traffic volume with externality considerations?
Q+
both Q* and Q+
neither of these are optimal
Generalized costs
Subsidy
Transcribed Image Text:Generalized costs Charge- MPCLRT=MSCLRT MSCC Q* Q1 0 MPCC Automobile Light rapid transit What is the optimal traffic volume with externality considerations? Q+ both Q* and Q+ neither of these are optimal Generalized costs Subsidy
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