Question

Higher unemployment caused by the recession and higher gasoline prices have contributed to a substantial reduction...

Higher unemployment caused by the recession and higher gasoline prices have contributed to a substantial reduction during 2008 in the number of vehicles on roads, bridges, and in tunnels. According to the Wall Street Journal, the reduction in demand for toll bridge and tunnel crossings created a serious revenue problem for many cities. In New York, the number of vehicles traveling across bridges and through tunnels fell from 23.6 million in January2008 to 21.9 million in January 2009. That drop presents a challenge because road tolls subsidize MTA subways, which are more likely to be used as people get out of their cars. In apparent attempt to raise toll revenue the MTA increased tolls by 10 percent on the nine crossings it controls. Is MTA a monopolist in New York City? Do you think MTA possesses high degree of market place" Why or why not? If the marginal cost of letting another vehicle cross a bridge or travel through a tunnel is nearly zero, how should the MTA set tolls to maximize profit? To maximize toll revenue? How are these two objectives related? When the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave tolls unchanged? Explain carefully

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Higher unemployment caused by the recession and higher gasoline prices have contributed to a substantial reduction...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT