The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-In many cities, the market for cab services is monopolized. This monopoly arises because:
A)of economies of scale.
B)of government restrictions on the entry of new firms.
C)there is a limited space on the streets for taxis.
D)it protects the consumers from unscrupulous drivers.
E)of high fixed costs of entering the business.

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-In many cities, the market for cab services is monopolized. This monopoly arises because:
A)of economies of scale. 
B)of government restrictions on the entry of new firms. 
C)there is a limited space on the streets for taxis. 
D)it protects the consumers from unscrupulous drivers. 
E)of high fixed costs of entering the business.

Quizplus · Accepted Answer

The Answer is B

The Figure Given Below Shows the Aggregate Demand and Supply