Q1: A toll bridge carries 6000 veh/day. The current toll is 1.00 SAR. When the toll is increased by 0.50 SAR, traffic vo

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Q1: A toll bridge carries 6000 veh/day. The current toll is 1.00 SAR. When the toll is increased by 0.50 SAR, traffic vo

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Q1 A Toll Bridge Carries 6000 Veh Day The Current Toll Is 1 00 Sar When The Toll Is Increased By 0 50 Sar Traffic Vo 1
Q1 A Toll Bridge Carries 6000 Veh Day The Current Toll Is 1 00 Sar When The Toll Is Increased By 0 50 Sar Traffic Vo 1 (31.65 KiB) Viewed 56 times
Q1: A toll bridge carries 6000 veh/day. The current toll is 1.00 SAR. When the toll is increased by 0.50 SAR, traffic volume decreases by 300 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)
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