To obtain a license to drive a "black cab" taxi in London,requires passing a rigorous test of the driver's knowledge of London's streets and buildings involving 2 to 4 years of study.This test affects the profitability of the London taxi industry:
A)Negatively,because of the debts that future taxi drivers accumulate during their training
B)Negatively,because it encourages native Londoners,who are already familiar with the city,to enter the industry
C)Positively because they restrict entry to the industry
D)Positively,because "doing the knowledge" increases solidarity among London's taxi drivers.if such licenses can be sold on a secondary market

Question

Quizplus · Accepted Answer

The rigorous test and years of studying required to obtain a license to drive a "black cab" taxi in London restricts entry to the industry, which can positively affect the profitability of the London taxi industry. This limits the number of drivers in the market, reducing competition and potentially leading to higher profits for those in the industry.

To Obtain a License to Drive a "Black Cab" Taxi