Suppose That the Cost of Operating a Taxicab Is $25,000/year

question 165

Multiple Choice

Suppose that the cost of operating a taxicab is $25,000/year and that a cab in full-time operation will collect $35,000/year in fares.
-Refer to the information above.Suppose that entry into the taxi industry is restricted but medallions (licences) can be bought and sold.If the annual interest rate on savings accounts is 8%,then the equilibrium price of a medallion will be ________ and taxi drivers will earn ________ their opportunity cost.

• A) $10,000;more than
• B) $10,000;exactly
• C) $80,000;exactly
• D) $125,000;more than
• E) $125,000;exactly

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Agents or factors that can cause developmental malformations or defects in an embryo or fetus.

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