Prior to the introduction of Uber, taxi services were essential city-sanctioned monopolies.

1. Describe the different types of costs to operate as an Uber driver. Categorize the costs by fixed and variable, and then indicate/describe the profit-maximizing condition.
2. If the price of gas falls what happens in the market for Uber rides. Consider which curve shifts and the corresponding change in equilibrium price and quantity.
3. Compare the equilibrium price and quantity for a taxi ride in the traditional taxi market relative to if the market were operated through Uber drivers. Explain the main characteristics of each market structure.
4. Do you think that allowing Uber drivers to operate is beneficial, why or why not?