Suppose there are five people who use a dirt road to go to and from their individual homes. Assume no one owns the road and that it works best when only three cars use it. Each person incurs a different marginal benefit but the same marginal cost of $1 to drive on the road. The marginal benefits for each person are given in the accompanying table: Driver Marginal Benefit ($) Marginal Cost ($) Ed Cathy Aviva John Sue a. Under these circumstances, how many people will use the road? O 1 person will use the road. O 2 people will use the road. O 3 people will use the road. O 4 people will use the road. O 5 people will use the road. b. Suppose now that a toll is collected from all drivers who use the road. Which level of toll would result in exactly three drivers using the road?
