Waec Model Questions Vol1 2024 Economics Question 35
Practice objective / multiple choice question 35 from the 2024 Waec Model Questions Vol1 Economics examination.
A city is evaluating a congestion toll on a central bridge. The demand for crossing is Qd = 1200 - 4P, where P is the toll (₦). The bridge can handle 800 crossings per day without congestion; each crossing beyond 800 imposes an external cost of ₦30. Assuming the bridge operator has zero operating cost and keeps the toll revenue, determine the toll that maximises net social welfare, the resulting number of crossings, and the maximum net social welfare (in ₦).
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This is Waec Model Questions Vol1 2024 Economics Question 35. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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