A large number of commuters decide to use either their cars or the bus. Commuting time by bus is increasing with the proportion of commuters using

A large number of commuters decide to use either their cars or the bus. Commuting time by bus is increasing with the proportion of commuters using car (traffic congestion). Commuting by car takes ????(????) = 20 + 60???? minutes while commuting by bus takes ????(????) = 45 + 15???? minutes, where N is the proportion of commuters by car, 0 ≤ ???? ≤ 1.

i) Plot the curves of the commuting time by car and the commuting time by bus as a function of the proportion of car users.

ii) What is the proportion of commuters who will take their car if everyone is taking his/her decision freely and independently to minimize his/her own commuting time?

iii) What is the proportion of car users that minimizes the total commuting time? (Hint: total commuting time is (20 + 60????)???? + (45 + 15????)(1 -????) and is minimized when 20 + 120???? – 30 – 30???? = 0).

iv) Compare your answer in (iii) to that in (ii) and interpret the difference. How large is the deadweight loss from externality?

v) Explain how a toll could achieve the efficient of commuters between train and car which will be beneficial to everyone. 

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10