Suppose the market for taxis in Mexico City is a natural monopoly.Which of the following is likely to result from the regulation of taxis in Mexico City?
A) The price of taxi rides will decrease.
B) The price of taxi rides will increase.
C) The income of taxi owners will increase.
D) Taxi owners will have greater monopoly power.
E) The supply of taxis will increase.
Correct Answer:
Verified
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