Freeways in large cities tend to be congested during rush hours to the point where offer little or no advantage over non-freeway routes because
A) drivers generally ignore marginal benefits and costs.
B) drivers usually ignore marginal benefits and costs during rush hours.
C) no monetary fee is charged for the use of freeways during rush hours.
D) not enough freeways have been constructed due to special interests' control of the government.
E) people need to get to work and the demand for freeway travel is consequently inelastic during rush hours.
C
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A) increases; increases; increases B) increases; decreases; increases C) increases; does not change; increases D) decreases; increases; increases E) increases; does not change; decreases
If the costs of negotiating and enforcing contracts are high relative to the benefits, buyers and sellers will have incentives to make economically efficient arrangements that increase value
Indicate whether the statement is true or false