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After Many Years, a Small Community Decides to Build a Toll

Question 175

Multiple Choice

After many years, a small community decides to build a toll road but then discovers it is little used.If it wishes the road to be used at the socially optimal level, the community should:


A) set the toll higher.
B) set the toll equal to $1.
C) set the toll equal to zero.
D) build another toll road.

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