A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially, only one lane will be used. Cars are estimated to arrive at this experimental lane at the rate of 300 per hour. It will take exactly 5.0 seconds to verify the debit card.

A. In how much time would you expect the customer to wait in line, pay with the debit card, and leave?

B. How many cars would you expect to see in the system?

The maximum tax rate on estates and gifts

For each example identify the most appropriate ctso

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms. a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.