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Unformatted text preview: Correction: “toll tax equal to MC(T1) – AC(T1)…”-Some crowding in CBD is optimal because land is expensive We want to avoid too much crowding (congesting) *Long run issues Midterm #2 will cover up to the Demand for Transportation Correction: “Long Run Issues” slide the lower part of the bracket should be one line up *Spatial Variations Optimum toll is greater where land is more expensive. Optimum toll is higher in the central city compared to the suburbs. *Tolls Tollbooth Automatic Vehicle Identification Time of day pricing for urban travelers Econ 366 Lecture Notes 11/3/2008...
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This note was uploaded on 09/26/2009 for the course ECON 366 taught by Professor Sengupta during the Fall '08 term at USC.
- Fall '08