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Car Congestion

Car Congestion. By Kyung-Min Ro. Links. http://www.youtube.com/watch?v=dDoN-BYvcTs http://www.youtube.com/watch?v=qun9jiLww8M http://www.youtube.com/watch?v=ZHlxdkdTaX8&NR=1. Costs. PMC=SMC. Deadweight loss. PFM. PS. PMB. SMB. QS. QFM. Output. Why is it market failure?.

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Car Congestion

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  1. Car Congestion By Kyung-Min Ro

  2. Links • http://www.youtube.com/watch?v=dDoN-BYvcTs • http://www.youtube.com/watch?v=qun9jiLww8M • http://www.youtube.com/watch?v=ZHlxdkdTaX8&NR=1

  3. Costs PMC=SMC Deadweight loss PFM PS PMB SMB QS QFM Output Why is it market failure?

  4. Why is it market failure? • The consumption of cars is a market failure because consumers only consider their own costs and benefits of consumption. For example, by over consuming the cars congestion occurs which slows down economic activities but the costs is not paid by consumers. Also, spill over costs are imposed on 3rd parties for enlarging the roads.

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