The function that relates the inverse of speed (1/S)(i.e., the time in minutes that it takes to travel 1mile) to traffic (T) on a highway is 1/S = 4 + 0.05T.Demand for traffic (measure as traffic volumeminute) on this road is T=6880-70 (1/S)Find the equilibrium traffic volume in the absenceof any congestion toll.Find the marginal cost function for traffic volume,where cost is expressed as travel time per mile inminutes.perFind the optimal level of traffic volume.Find the optimal congestion toll, expressed inminutes. (Imagine that the congestion toll consistsof sitting in the “penalty box" for this period oftime.)The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T.Demand for traffic (measure as traffic volume per minute) on this road is T=6,880- 70-(1/S).a. Find the equilibrium traffic volume in the absence of any congestion toll.b. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes.c. Find the optimal level of traffic volume.d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time.)

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Find the equilibrium traffic volume in the absence of any congestion toll. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. Find the optimal level of traffic volume.

Find the equilibrium traffic volume in the absence of any congestion toll. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. Find the optimal level of traffic volume.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The function that relates the inverse of speed (1/S)
(i.e., the time in minutes that it takes to travel 1
mile) to traffic (T) on a highway is 1/S = 4 + 0.05T.
Demand for traffic (measure as traffic volume
minute) on this road is T=6880-70 (1/S)
Find the equilibrium traffic volume in the absence
of any congestion toll.
Find the marginal cost function for traffic volume,
where cost is expressed as travel time per mile in
minutes.
per
Find the optimal level of traffic volume.
Find the optimal congestion toll, expressed in
minutes. (Imagine that the congestion toll consists
of sitting in the “penalty box" for this period of
time.)
The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T.
Demand for traffic (measure as traffic volume per minute) on this road is T=6,880- 70-(1/S).
a. Find the equilibrium traffic volume in the absence of any congestion toll.
b. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes.
c. Find the optimal level of traffic volume.
d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time.)

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QUESTION 11 The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T. Demand for traffic (measure as traffic volume per minute) on this road is T=6,880 -– 70.(1/S). a. Find the equilibrium traffic volume in the absence of any congestion tollI. b. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. c. Find the optimal level of traffic volume. d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time.)
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