The Economy Tomorrow The following Economy Tomorrow section provides estimates of time spent in traffic delays.
If the average worker produces $110 of output per hour, what is the opportunity cost of.
a. Current traffic delays? $ billion
b. Estimated delays in 10 years (assuming no change in worker productivity)?

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okpalawalter8 okpalawalter8 · Answer 1 · 2022-07-14T18:24:49+02:00

The opportunity cost of Current traffic delays , and Estimated delays in 10 years is mathematically given as

The existing traffic bottlenecks are costing the economy $385 billion in lost productivity per year.

It is anticipated that in 10 years, traffic delays would cost $440 billion in lost productivity.

The opportunity cost is defined as the product of the value of production per hour multiplied by the hourly wage.

Generally, the Opportunity cost is mathematically given as

Opportunity cost =$110 million * $3.5 billion

Opportunity cost = $385 billion

The existing traffic bottlenecks are costing the economy $385 billion in lost productivity per year.

b)

For every year that goes by, 4 billion hours will be wasted in traffic.

The opportunity cost of a lost hour of work is defined as the product of its value per hour of production times its price.

Generally, the Opportunity cost is mathematically given as

Opportunity cost =$4 billion *$110

The answer is = $440 billion

It is anticipated that in 10 years, traffic delays would cost $440 billion in lost productivity.