Question: A New York City cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labor costs.

A New York City cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labor costs. Does this violate the competitive model? Why or why not?

Step by Step Solution

★★★★★

3.36 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

No it does not viola... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Microeconomics Questions!

a. In the highly competitive TV manufacturing industry, a new innovation makes it possible to cut the average cost of a 50-inch plasma screen from $1,000 to $600. Most TV manufacturers quickly adopt...

Multiple Choice Questions 1. Which of the following is not a source of product differentiation? a. Physical differences in products b. Differences in quantities that firms offer for sale c....

Multiple Choice Questions 1. In the long run, which of the following outcomes is most likely for a firm? a. Zero accounting profits but positive economic profits b. Zero accounting profits c....

A New York City cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labor costs. Does this violate the competitive model? Why or why...

A New York City cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labor costs Does this violate the competitive model? Why or why not?

A St. Johns cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labour costs. Does this violate the competitive model? Answer Yes, or...

( a ) If the long - run cost function is c ( y ) = y 2 + y + 1 , what is the long - run supply curve of the firm? ( b ) A taxi operator appears to be making positive profits in the long run after...

Subject: Police Operations Be sure to make sure understand the concepts of the 4th Amendment and, specifically, Probable Cause. Then, read this discussion prompt and type and answer with an...

What are the scopes of SheTaxis women on wheel case study? Abstract This case study investigates the key competitive advantages, marketing strategies, and challenges of She Taxis, a taxi service in...

Please read the case, "Hubble Contact Lenses: Data-Driven Direct to Consumer Marketing," (case ID 519011-PDF-ENG) and answer the following questions. Which consumer and technological changes enabled...

Friendship is a national manufacturer and distributor of greeting cards. The company has recently begun distributing a low-priced line of cards using a lower-grade paper. Quality differences between...

Four 18.0 resistors are connected in parallel across a 25.0 V ideal battery. What is the current through the battery?

Bee is considering a municipal bond yielding 6 . 5 % and a corporate bond yielding 9 . 2 % . Her marginal tax rate is 2 8 % . she should invest in the bond because the critical marginal tax rate is %...

1. An interest rate swap is an agreement between two parties to exchange interest payments at designated times in the future based on a notional principal amount.

Consider the cost function c(y) = 4y2 + 16. (a) The average cost function is ______________. (b) The marginal cost function is ______________. (c) The level of output that yields the minimum average...

Remember Ottos brother Dent Carr, who is in the auto repair business? Dent found that the total cost of repairing s cars is c(s) = 2s2 + 100. (a) This implies that Dents average cost is equal to...

The Miss Manners Refinery in Dry Rock, Oklahoma, converts crude oil into gasoline. It takes 1 barrel of crude oil to produce 1 barrel of gasoline. In addition to the cost of oil there are some other...

Explain how you could use the random number table shown below to simulate rolling a fairsix-sided die. Assume you are interested in the probability of rolling a 2. b. Using the random number...

Can we expect a similar relationship between age and BMI for older American adults? Correlation and regression evaluate this research question by using older respondents (whose age was higher than...

A 10-year $14,600,000 long-term loan from the American Bank. The loan has the following terms: a. The interest rate is 8.2%, compounded annually. The interest rate is fixed for the life of the loan...