consider that jitney is a firm that provides transportation services in a midwestern town.

Consider that jitney is a firm that provides transportation services in a Midwestern town. As the only provider with a government permit to operate, Jitney provides service to and from the local train station, retail stores and other local destinations. To access the service, customers may call for a specific pick-up time, or wait by any curb for an unscheduled curbside pick-up. The market demand for Jitney's services is described by the equation: P = 17 - 0.025Q, where Q is the number of trips per day, and P is the price per trip. With regular maintenance on its fleet of vehicles as well as outstanding loan payments, the firm faces a daily fixed cost of $200. In addition, Jitney's labor force includes drivers and dispatchers, and all report to work if the firm is providing service. Along with the labor force and the necessary materials needed for day-to-day operation, the firm's additional costs can be described by the equations: MC = 2 + 0.05Q and AVC = 2 + 0.025Q, where Q is the number of trips per day. 1. What is jitney's current profit-maximizing quantity, and the price it charges? (6 points) Complete the sentence by entering a numerical value (0.00 is acceptable) in the blank spaces provided: Currently, Jitney provides trips per day and charges $ for each trip.d provi 2. What is Jitney profit at the current profit-maximizing quantity? (6 points) Complete the sentence by entering the letter representing one of the phrases, or by entering a numerical value (0.00 is acceptable) in the blank spaces provided: in the 15t blank space: A = profit | B = loss in the 2nd blank space: a numerical value At the current profit-maximizing quantity, Jitney' is earning an economic of $ per day. 3. Is the current market outcome efficient? (8 points) Complete the sentence by entering the letter representing one of the phrases, or by entering a numerical value (0.00 is acceptable) in the blank spaces provided: in the 1St blank space: A = either is or is not | B = is | C = is not in the 2nd blank space: D = efficiency | E = efficiency or inefficiency | F = inefficiency in the 3dblank space: a numerical valueThe current market outcome efficient and a measure of this is $ Now consider that after much lobbying and quiet protests from the county residents about unfavorable service (delays, being stranded, etc), the local government removes restrictions in this market and other car services can enter the market. After the government's actions, the market adjusts; Jitney remains dominant in the market and the new car services in the market are highly competitive. The residual demand is P = 11 - 0.0125Q and the competitive supply is MC = 5 + 0.025Q. 4. What can be said about the market outcome after the government's decision? (24 points) Complete the sentence by entering the letter representing one of the phrases, or by entering a numerical value (0.00 is acceptable) in the blank spaces provided: in the 1St blank space: a numerical value in the 2nd blank space: a numerical value in the 3'd blank space: K = profit | M = loss in the 4th blank space: N = decreased to | O = increased to | P = remains the same at in the 5th blank space: a numerical value in the 6th blank space: a numerical value in the 7th blank space: a numerical valuein the 7 0 blank space: a numerical value in the 8th blank space: a numerical value in the gth blank space: R = better off compared to | S = no better or worse off compared to | T = worse off compared to in the 10th blank space: a numerical value As a result of the government's decision, Jitney now provides trips per day and charges $ for each trip. Now, Jitney's economic has The new service providers use their private cars and typically provide 5 trips per day and charge $ for each trip. As a result, there are new service providers and the total market quantity is trips per day. Furthermore, consumers are before the government's action. After the government's action, consumers surplus is $