Traffic congestion causes higher costs and discomfort to residents of a city, an

Question

Traffic congestion causes higher costs and discomfort to residents of a city, and:
Choose one answer.
a. the marginal social cost of any one individual's use of the roads is greater than the individual marginal cost.
b. the marginal social cost of any one individual's use of the roads is less than the individual marginal cost.
c. it is impossible to compare the marginal social cost of any one individual's use of the roads with the individual marginal cost.
d. the marginal social cost of any one individual's use of the roads equals the individual marginal cost.

Explanation / Answer

Traffic congestion causes higher costs and discomfort to residents of a city, and:
Choose one answer.

a. the marginal social cost of any one individual's use of the roads is greater than the individual marginal cost.

Traficc congestion gives additional costs like additional fuel consumption, pollution, opportunity cost of lost time and discomfort, these are the negative externalities. These gives a Marginal social cost which is always greater then the marginal private cost

b. the marginal social cost of any one individual's use of the roads is less than the individual marginal cost.
c. it is impossible to compare the marginal social cost of any one individual's use of the roads with the individual marginal cost.
d. the marginal social cost of any one individual's use of the roads equals the individual marginal cost.

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