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Optimal peak load toll

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The per-week demand for use of the Golden Gate Bridge in San Francisco is P = 12 - 0.15Q during peak traffic periods and P = 9 - 0.1Q during off-peak hours, where Q is the number of cars crossing the bridge in thousands and P is the toll in dollars. If the marginal congestion cost of using the bridge is MC = 5 + 0.2Q, what is the optimal peak load toll for crossing the bridge?

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Solution Preview

For peak traffic periods,

P = 12 - 0.15Q

TR = P.Q = (12 - 0.15Q).Q

MR = d(TR)/dQ = 12 ...

Solution Summary

Optimal peak load toll is listed.