By driving onto a congested road for which no toll is charged, a driver a. contributes to the overuse of a common resource. b. contributes to a negative-externality problem. c. is inflicting additional time cost on all of the other drivers. d. All of the above are correct.

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Business

Alina Scott

17 August, 16:20

By driving onto a congested road for which no toll is charged, a driver a. contributes to the overuse of a common resource. b. contributes to a negative-externality problem. c. is inflicting additional time cost on all of the other drivers. d. All of the above are correct.

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Max · Answer 1

d. All of the above are correct.

Explanation:

By driving on a congested road, on which no toll is charged means maximum people avoiding payment of toll will take this road.

The driver will contribute to overuse of common resource as this is the common road with least cost, traffic will be highest on this road.

It will contribute negatively as will lead to external problem, as space on road will decrease.

As he occupies space on common road, he will be also contribute to increase in traffic and thus would increase and add to time cost for other drivers also.

Thus, all of the above statements are true.