The marginal cost of providing a taxi trip is $5.00. Each taxi has the ability to make 20 trips per day. The demand for taxi trips is D(p) = 1,200 - 20p, where demand is the number of rides per day. Price is measured in dollars. Assume a perfectly competitive industry. How many taxicabs will there be?
The marginal cost of providing a taxi trip is $5.00. Each taxi has the ability to make 20 trips per day. The demand for taxi trips is D(p) = 1,200 - 20p, where demand is the number of rides per day. Price is measured in dollars. Assume a perfectly competitive industry. How many taxicabs will there be?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
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The marginal cost of providing a taxi trip is $5.00. Each taxi has the ability to make 20 trips per day. The demand for taxi trips is D(p) = 1,200 - 20p, where demand is the number of rides per day. Price is measured in dollars. Assume a
How many taxicabs will there be? (Remember, total demand was 1,100 trips.)
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