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Travelers Driving Through Gotham City Can Use a Freeway or the Cross

Question 76

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Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car at all other times. The weekly demand for using the tollway during rush hour is Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car at all other times. The weekly demand for using the tollway during rush hour is where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Gotham City's marginal cost of operating the tollway is per car. a. What are the marginal revenue curves associated with the two demand curves? b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway? where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car at all other times. The weekly demand for using the tollway during rush hour is where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Gotham City's marginal cost of operating the tollway is per car. a. What are the marginal revenue curves associated with the two demand curves? b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway? Gotham City's marginal cost of operating the tollway is Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car at all other times. The weekly demand for using the tollway during rush hour is where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Gotham City's marginal cost of operating the tollway is per car. a. What are the marginal revenue curves associated with the two demand curves? b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway? per car.
a. What are the marginal revenue curves associated with the two demand curves?
b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway?

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