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labwork [276]
3 years ago
7

Ride-sharing apps like Uber and Lyft have faced major opposition from existing taxi services as they have expanded into new citi

es, and in some cases have been banned and prevented from entering. Often, the cities banning these services have a small number of large preexisting taxi companies. Consider a hypothetical city in which the two major preexisting taxi companies stand to lose $350,000 in joint profit if these ride-sharing services enter and compete. Assume the benefit to consumers in the form of lower prices for rides would be a total of $450,000. Answer the following questions regarding this possible law. From the standpoint of economic efficiency, banning competition from ride sharing services is economically . Banning the entry of these ride sharing services would create
Business
1 answer:
professor190 [17]3 years ago
8 0

Answer:

Explanation:

1.

Inefficient

Since, the entry of ride sharing services will reduce the price and increase the competition, then banning these services will add to the inefficiency to the market.

2.

Concentrated benefits and widespread costs

The ban will give benefits that is concentrated to the few taxi services and cost will be spread to the whole consumer groups who want to ride the cheap and quality rides.

3.

$350,000

It is the benefit, earned by the few existing taxi services, then they will spend the amount upon lobbying the law.

4.

Pass

Law will be passed because the consumers will not lobby against it.

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When an insured stops making the payments on the loan taken his cash value policy will terminate when the loan amount with interest equals or exceeds the cash value

Explanation:

Cash value policy are the type of saving policy and they provide the life time coverage of the policy holders most cash values have high premiums than the insurance

It requires a fixed level premium payment and the from that amount the money is allocated for different reasons according to the wish of the policy holder and the remaining amount is deposited as the cash value amount

8 0
3 years ago
The decision-making process followed by consumers to maximize utility assumes thatA. consumers do not know how much marginal uti
Dmitry [639]

Answer:

The correct answer is option C.

Explanation:

The decision-making process followed by consumers assumes that consumers are rational beings who are trying to maximize their satisfaction using their limited income.  

So these consumers will consume the good or combination of goods that maximize their total utility derived from the consumption of these goods.

The consumers have limited income, they are aware of the marginal utility they derive from the consumption of an additional unit and they are also able to rank their preferences.

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3 years ago
Which members of OPEC would be the most likely to favor high oil prices now because of their small percentage of the world prove
solmaris [256]

The members of OPEC that would be in favor of high prices due to the small oil reserves that they have would be the countries in Africa

  • Ecuador
  • Angola
  • Tunisia
  • Gabon

<h3>What is OPEC?</h3>

This is an organization of the petroleum producing countries of the world.

Due to a rise in the oil prices now, these nations would most likely be favored in the sales of their products

Read more on OPEC here: brainly.com/question/26412451

6 0
3 years ago
It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to pr
stealth61 [152]

Because the additional output is produced with an increasing input in the production signals an example of <u>diminishing returns</u> to specialization.

<h3>What is a diminishing returns?</h3>

A diminishing returns to specialization is known to occurs if more units of resources are required to produce each additional unit.

In conclusion, the additional output which is produced with an increasing input in the production is an example of <u>diminishing returns</u> to specialization.

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5 0
3 years ago
Let’s suppose that a lender has established a 90% loan-to-value ratio cutoff as one of its primary underwriting criteria. If a b
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Answer:

77.27% or

(17/22)%

The loan will accepted

Explanation:

property value 550,000

haircut 125,000

550,000 - 125,00 = 425,000 mortage value

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The ratio is below the cutoff, so it is within the boundaries the lender expect. The loan will be given.

8 0
3 years ago
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