1. The increase in congestion on Britain's Road's
In economic terms congestion is a mixture of externalities and information failure. ... Information failure is apparent as if information of delays and congestion could be relayed, alternative routes could be taken and congestion reduced. ... This diagram shows, if there are negative externalities then the marginal social benefit will be less than the marginal private benefit. ... However, when market failure occurs it would be because a market would produce where the marginal private cost is equal to the marginal private benefit (Q^). ... The lower price relative to private car use wil...
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