Essay
Matthew drives a truck for Overtheroad Haulers. Matthew's marginal benefit for driving per day is: 
where m is the number of miles driven. The marginal social cost per mile is 
Calculate the efficient number of miles driven for Matthew in a day. Since Overtheroad Haulers has full insurance on Matthew's truck, Matthew's personal marginal cost is: 
How many miles per day will Matthew drive? Would it be efficient for society if Overtheroad Haulers places a limit on the number of miles Matthew drives? If so, what limit should they set?
Correct Answer:
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Efficiency requires: 
Given Matthew is o...View Answer
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Correct Answer:
Verified
Given Matthew is o...View Answer
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