Q1: A toll bridge carries 6000 veh/day. The current toll is SAR. When the toll is increased by 0.50 SAR, traffic voiuine

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Q1 A Toll Bridge Carries 6000 Veh Day The Current Toll Is Sar When The Toll Is Increased By 0 50 Sar Traffic Voiuine 1 (32.37 KiB) Viewed 78 times

Q1: A toll bridge carries 6000 veh/day. The current toll is SAR. When the toll is increased by 0.50 SAR, traffic voiuine decreases by 20 veh/day. Determine the amount of toll that should be charged to maximize the revenue. [10 Marks] a) Write the volume (V) and cost (c) function by assuming a linear relationship between traffic volume (V, veh/day) and cost (c, in halalas). (2.5 Marks) b) Calculate the revenue (SAR) for the current condition. (2.5 Marks) c) Calculate the new toll (c) to maximize the revenue. (2.5 Marks) d) How much additional revenue (AR) in SAR will be received? (2.5 Marks) by=300 veh\day Current to 1.00 SAR