Theoretically,the quota rent for a New York taxicab owner is equal to the market price of the license that allows him to drive the cab.

Question

Quizplus · Accepted Answer

Quota rent refers to the economic profit that accrues to the owner of a restricted asset, such as a taxicab license. In the case of a taxicab owner in New York, the quota rent is equal to the market price of the license, which is determined by supply and demand factors in the market for these licenses. Therefore, the statement is true.

Theoretically,the Quota Rent for a New York Taxicab Owner Is