User Fees May Reduce the Net Benefits That Users Derive

Multiple Choice

User fees may reduce the net benefits that users derive from new infrastructure in two ways ________ and _____________.

A) By reducing purchasing power; by motivating them to cut back on use
B) By increasing the quality of the service; by decreasing the length of time the service will be available
C) By decreasing the quality of service; by increasing the quantity of services
D) By removing positive externalities; by eliminating the free rider problem