Question

Ul thhe 8000 guod 17. New Glarus has just built and opened a toll road connecting New Glarus to Old Glarus. This toll road is never congested no matter what time of day or what day of the week it is. Because the toll road is both nonrival in consumption and excludable, it is an example of an artificially scarce good. The marginal cost of letting an additional driver use the toll road is equal to A. the toll B. zero. C. the coll divided by the number of drivers currently using the toll road. D. the toll divided by the population of the two communities.

Answer 1

Option B. Zero

Explanation: The toll road is nonrival in consumption; therefore, when one additional user uses it, the toll road does not become less available for other users. So, the marginal cost of allowing one more user is zero.