When a city licenses only 3 taxi firms to serve the market,the city has created a

Name: When a city licenses only 3 taxi firms to serve the market,the city has created a
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When a city licenses only a few taxi firms to serve the market, it creates a legal oligopoly. This is because the firms have exclusive rights to operate in the market and there are barriers to entry for new firms. However, this is a legal form of oligopoly as it is regulated by the city government.

When a City Licenses Only 3 Taxi Firms to Serve