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Suppose the services of a road are subject to congestion after 50,000 vehicles per hour enter the road. Assume that it is feasible to price road services on an hourly basis. Create a graph similar to the one in Figure 4.2 of the textbook to show how the services of the road, in an effort to achieve efficiency, should be priced per hour when fewer than and more than 50,000 vehicles per hour are expected. Explain your answer. Create a graph on a spreadsheet program (such as MS Excel).

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The response addresses the queries posted in 337 words with references.

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The response addresses the queries posted in 337 words with references.
//In this paragraph, we are going to discuss the pricing of public goods. There will be a need to set up the price of road on hour basis used by the public. There will be a need to elaborate such price through the graph to easily understand of congestible goods pricing procedure. //

The price of public good is based on marginal cost concept because the objective of public goods is not to earn revenue but for the welfare of the society. The chargeable ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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