Multiple Choice
The following data show the relationship between the number of drivers who leave for work at 8 a.m., their average commute time, and their marginal benefit of commuting.
If there is no charge to use the highway, then one would expect that ________ than the socially optimal number of drivers will leave at 8 a.m. because ________.
A) more; each driver's use of the highway imposes an external cost on other drivers by increasing the commute time
B) more; the social marginal benefit of using the highway is greater than the private marginal benefit
C) less; each driver's use of the highway imposes an external cost on other drivers by increasing the commute time
D) less; the private marginal benefit of using the highway is greater than the social marginal benefit
Correct Answer:

Verified
Correct Answer:
Verified
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