Big Road Inc., a private company, is hired to build and run a stateÍs entire road system. The company charges high fees to use i

Question

lina2011 [118]

3 years ago

7

Big Road Inc., a private company, is hired to build and run a stateÍs entire road system. The company charges high fees to use i

ts roads. It maintains the roads only in heavily populated areas. Which of the following describes this project?
A. positive externality

B. public good

C. market failure

D. negative externality

I think the answer is A

Social Studies

2 answers:

boyakko [2] · Answer 1 · 2022-02-24T08:31:50+03:00

boyakko [2]3 years ago

5 0

Based on the scenario, i think the one that describe this project is : C. market failure
If the road was built as a federal project, it should have low cost and cover a wide area of the region

hope this helps

NikAS [45] · Answer 2 · 2022-02-24T10:38:19+03:00

NikAS [45]3 years ago

3 0

The above project is an example of D. NEGATIVE EXTERNALITY.

Negative externality is defined as the cost that is suffered by a third party as a result of an economic transaction.