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 8%,then the equilibrium price of a medallion will be ________ and taxi drivers will earn ________ their opportunity cost.
A) $10,000;more than
B) $10,000;exactly
C) $80,000;exactly
D) $125,000;more than
E) $125,000;exactly

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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 8%,then the equilibrium price of a medallion will be ________ and taxi drivers will earn ________ their opportunity cost.
A) $10,000;more than
B) $10,000;exactly
C) $80,000;exactly
D) $125,000;more than
E) $125,000;exactly

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