The schedule of tolls capable of maximizing the net revenue of a bridge owner
A) has no relationship to the cost of constructing the bridge.
B) is the highest anyone will pay rather than forgo the opportunity to cross the bridge.
C) varies proportionately to the cost of constructing the bridge.
D) will be higher than the corresponding tolls for a tunnel, because tunnel construction costs must be sunk rather than elevated.
A
You might also like to view...
New computer technology has
A) increased the cost of financial innovation. B) increased the demand for financial innovation. C) reduced the cost of financial innovation. D) reduced the demand for financial innovation.
Refer to Figure 5.1. All else equal, an increase in the capital stock will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.