Marginal Social Cost

Today’s generation were all modernized full of infrastructures, buildings, roads, bridges and well advance technology such as gadgets, mobiles, computers, laptops, iPods and etc. Unlike before that the only source of communication of people was only a letter and when they travel they walk in miles or ride a carabao just to visit a friend or if they want to buy something.
Nowadays, commuters ride a bus, taxi, jeep, tricycle or some of them own expensive cars. They travel in 2 or 4 lanes pedestrian just to reach their destination. In instant cases, road users incurred costs coming from environment, incident or accident risk, delays to other commuters or deterioration and damage of the road. This cost was called marginal external cost. On the

In addition, this cost has far reaching effects that made them difficult to quantify. According to McCain (2012) “Marginal costs and benefits are a vital part of economics because they help to provide the relevant measurement of costs and benefits at a certain level of production and consumption. If measured marginal costs and benefits are provided, it is much easier to calculate the ideal price and quantity”. Technical and economic are the two main constraints but the latter has the greater impact in the development of road user charging. The reason was that the benefits outweighed the costs of change that includes capital and running cost of the said charging

It leaves important ideas on how to properly charge marginal external and social cost to reduce certain congestion that will be encounter by the road users. In addition, I’m agreeing on the study in UK which they used the modeling system that evaluates marginal external cost against congestions charges. Clearly, the piece was objective because it demonstrates a well balance view of the case study. Furthermore, it holds the interest of the readers and helps them to think critically on how to find ways to lessen such traffic and utilize their time without dissipating their resources and