Author Question: The requirement that New York City taxi drivers own a medallion in order to operate a taxi in the ... (Read 313 times)

Metfan725 · **on:** Jun 30, 2018

The requirement that New York City taxi drivers own a medallion in order to operate a taxi in the city reduces competition and raises the fares that customers pay.
a. True
b. False

Question 2

When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry
b. quantity demanded decreases, but only slightly
c. all firms in the industry incur economic losses
d. entry of new firms and expansion of existing firms stop
e. marginal revenue increases