A bridge has been constructed between the mainland and an island.The total cost (excluding tolls) to travel across the bridge isexpressed as C = 50 + 0.5V, where V is the number of veh/h and C isthe cost/vehicle in cents. The demand for travel across the bridgeis V = 2500 - 10C.
(a) Determine the volume of traffic across the bridge.
(b) If a toll of 25 cents is added, what is the volume across thebridge?
(c) A tollbooth is to be added, thus reducing the travel time tocross the bridge. The new cost function is C = 50 + 0.2V. Determinethe volume of traffic that would cross the bridge.
(d) Determine the toll to yield the highest revenue for demand andsupply function in part (a) and the associated demand andrevenue.