Answer to Question #130834 in Economics of Enterprise for Zara Naqvi

Question

Explain the factors that are involved in the construction of motorway

Answer 1

The operation of a highway depends on the impact on it of numerous natural geophysical factors, such as climate, hydrological conditions, relief and soil-geological structure of the area. Climatic conditions have a particularly great influence on road conditions. These include the amplitude and speed of temperature fluctuations, the amount of precipitation and evaporation, the direction and speed of winds, the thickness of the snow cover, and the depth of freezing.

Solar radiation causes considerable damage to the road, which is especially typical for our region. Under the influence of the sun, bitumen heats up in the asphalt concrete mixture, as a result of which such deformations as "ruts" occur (asphalt concrete being pressed from the mass of passing cars). Now a new type of asphalt concrete has been developed, the so-called bitumen-rubber composite binder, which is less susceptible to such types of deformations.

In addition to natural factors, economic factors such as expediency and carrying capacity have a great influence. Expediency should be understood as the potential economic usefulness from the construction of the road: is there a need for servicing industrial enterprises or agriculture with a road in a particular area.

After the expediency is justified, it is necessary to correctly calculate the traffic capacity of the road under construction, taking into account the basic concepts of game theory.