In many cities, the market for cab services is monopolized. This monopoly arises because:
a. of economies of scale.
b. of government restrictions on the entry of new firms.
c. there is a limited space on the streets for taxis.
d. it protects the consumers from unscrupulous drivers.
e. of high fixed costs of entering the business.
b
You might also like to view...
Use the above table. The autonomous consumption in this table is
A) $0. B) $20. C) $50. D) $140.
As a form of business, a partnership
A) cannot issue stock. B) has limited liability. C) has the most government rules and regulations affecting it. D) has only one owner.
The Federal Trade Commission (FTC) Act
A) prohibited charging buyers different prices if the result would reduce competition. B) gave the FTC full power to regulate mergers. C) closed the loopholes in the Sherman and Clayton Acts. D) divided authority to police mergers between the FTC and the Department of Justice.
You are analyzing the demand for good X. Which of the following will result in a shift to the right of the demand curve for X?
A) A decrease in the price of X B) An increase in the price of a good that is a complement to good X C) An increase in the price of a good that is a substitute for X D) all of the above