Uber is one of the giant private corporations in the United States, and its mobile app allows consumers to arrange transportation using a smartphone. Uber is currently operating in more than 60 countries thanks to new technology and the fluidity of mobile connectivity.Uber Technologies Inc. collects customer requests and routes them to nearby drivers who can serve them (with location and final destination information). A smartphone is, therefore, an essential component of a driver's operational tools. Uber Technologies Inc. emerged in 2009 as the dominant player in the ridesharing industry since it has been omnipresent and immense. UBER competes with several similar service providers such as Taxify, Zebra Cabs, Orange Cabs etc.

1.1 Justify the type of market structure that UBER operates in and evaluate the likelihood of UBER making an economic profit in the long-run.

1.2 With the aid of a diagram, explain the economic theory underlying a kinked demand curve. Justify whether it would be applicable in this case.