Question
Assume the TTC and Uber are substitutes and the Uber market is a standard constant-cost industry. What are the short-run effects of an increase in
Assume the TTC and Uber are substitutes and the Uber market is a standard constant-cost industry. What are the short-run effects of an increase in TTC fares? A. Marginal cost of a driver's final hour worked: increases. Driver's profit: increases. B. Marginal cost of a driver's final hour worked: increases. Driver's profit: no change. C. Marginal cost of a driver's final hour worked: decreases. Driver's profit: increases. D. Marginal cost of a driver's final hour worked: decreases. Driver's profit: no change. E. Marginal cost of a driver's final hour worked: no change. Driver's profit: increases.
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