Multiple Choice
The following data show the relationship between the number of drivers who leave for work at 8:00 a.m. ,their average commute times,and their marginal benefit associated with the commute times.
-Refer to the data above.It is likely that a toll would reduce average commute times more effectively than a Coase theorem-styled,negotiated solution,because
A) this is not an externality problem.
B) the government needs additional revenue.
C) the external cost is not well-defined.
D) no one will negotiate when they leave for work.
E) private negotiations among 500 drivers are impractical.
Correct Answer:

Verified
Correct Answer:
Verified
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