Question: In New York City, every taxicab driver must own a license (called a medallion) to drive a cab. The city has issued a fixed number

In New York City, every taxicab driver must own a license (called a medallion) to drive a cab. The city has issued a fixed number of medallions, and they are traded on the open market. Because the number of medallions is small, the price of cab rides is higher than it otherwise would be. Suppose that the city decides to abolish the medallion program and allow free entry to the taxicab industry. True or False: The owners of medallions will be just as well off after the program is abolished as if it had never existed.

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