Purchase Solution

Economics - Revenue

Not what you're looking for?

Ask Custom Question

A bridge over the Coosa River currently has no tolls and an average passage of 880 cars per day. State government wants to place a toll on the bridge with the objective of raising the most revenue. Government surveys indicate that a toll of $7.00 or more will induce all drivers to take a nearby, alternate route. What's the optimal toll and how much daily revenue will be collected? Show the graph and the proof.

Purchase this Solution
Solution Summary

This solution helps with a program involving economics. It helps find the optimal toll and daily revenue to be collected. Step by step calculations and graphs are provided along with the solution.

Solution Preview

Problem: A bridge over the Coosa River currently has no tolls and an average passage of 880 cars per day. State government wants to place a toll on the bridge with the objective of raising the most revenue. Government surveys indicate that a toll of $7.00 or more will induce all drivers to take a nearby, alternate route. What's the optimal toll and how much daily revenue will be collected? Show the graph and the ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • profit maximization condition

    209768 Discussion Questions - In economics, when you plot cost and revenue on the Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue.

  • Economics: Quantity and Demand

    The solution discusses the intricacies of demand and supply under economics. The solution will be helpful to economics and finance students. Equations are provided to aid in the understanding and calculations.

  • Microeconomics- Marginals in Economics

    Marginals in economics just refers to an incremental or additional amount. Most of the time when looking at a marginal change in economics, it is referring to a one unit change in cost, revenue, tax rate, etc.

  • Keynesian theory, supply side economics and monetary policy

    Conventional ideas would say that tax revenue would decline if taxes were cut. That would make sense. In other words, total revenue should have a positive correlation with the tax rate.

  • Managerial Economics Questions

    160178 Managerial Economics Is the following sentences true or false and why (please give mathematical or graphical explanation when needed)? 1.

  • Economics for Water Projects

    The economics for water projects are determined.

  • Elasticity and Outperforming Command Systems

    This solution also explains if market systems outperform command systems of economics over the past 200 years, and if the U.S. is an example of a pure market system of economics without elements of command or tradition.

  • marginal revenue

    220449 marginal revenue costs The economics student knows that the profit maximizing manager will produce the quantity where marginal revenue equals marginal cost (a J-shaped curve which reflects a different marginal cost at every quantity).

  • Business Model Game Plan

    Deals with whether the revenue-cost -profit economics of its strategy demonstrate the viability of the business enterprise as a whole-in effect, it is management's plan for making money in a particular line of business c.

  • Simple questions on basic economics

    Total revenue = P x Q Total revenue = ($1,000 - 4Q)Q Total revenue = $1,000Q - 4Q2 MR = $1,000 - 8Q Question 11 Total cost minimization occurs at the point where: MC=0.

View More Related Solutions