Suppose that the cost of operating a taxicab is $25,000/year and that a cab in full-time operation will collect $35,000/year in fares.
-Refer to the information above.Suppose that entry into the taxi industry is restricted but medallions (licences)can be bought and sold.If the annual interest rate on savings accounts is 4% and the market for medallions is in equilibrium,how much will a medallion cost?
A) $400.
B) $4000.
C) $10,000.
D) $40,000.
E) $250,000.

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The Answer of Suppose that the cost of operating a taxicab is $25,000/year and that a cab in full-time operation will collect $35,000/year in fares.
-Refer to the information above.Suppose that entry into the taxi industry is restricted but medallions (licences)can be bought and sold.If the annual interest rate on savings accounts is 4% and the market for medallions is in equilibrium,how much will a medallion cost?
A) $400.
B) $4000.
C) $10,000.
D) $40,000.
E) $250,000.

Suppose That the Cost of Operating a Taxicab Is $25,000/year