Roads are or at least should be built to reduce


Roads are (or at least should be) built to reduce transportation costs. Often we think in terms of saving time. However, as each vehicle enters the highway (with the same primary purpose), the highway becomes more congested. Assuming that no driver enters the highway with the primary purpose of causing congestion, the congestion that results is a negative externality. Discuss possible ways to reduce the externality of highway congestion. Don't be afraid to explore a variety of solutions. Could the Coase Theorem be applied in this case? Briefly explain

Solution Preview :

Prepared by a verified Expert
Business Economics: Roads are or at least should be built to reduce
Reference No:- TGS02192195

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)