User Account

All Pages

Derive the price of a medallion

Assignment Help Macroeconomics
Reference no: EM131270100

Suppose a taxicab company is expected to earn annual above-normal profits of $10,000. Assume the interest rate is 5%.

a. Derive the price of a medallion if entry regulation is expected to continue forever.

b. Suppose a new technology, let's call it Uber, will be available in two years. Uber can provide the same services as the taxi without the need for a medallion (can avoid the entry regulation). Derive the change in price of a medallion in response to this new technology.

Reference no: EM131270100

Questions Cloud

Design a 32-bit counter that adds 4 at each clock edge : Modify the counter from Exercise 5.44 such that the counter will either increment by 4 or load a new 32-bit value, D, on each clock edge, depending on a control signal Load. When Load = 1, the counter loads the new value D.
Build an 8-bit incrementer using half adders : Build a 32-bit synchronous Up/Down counter. The inputs are Reset and Up. When Reset is 1, the outputs are all 0. Otherwise, when Up = 1, the circuit counts up, and when Up = 0, the circuit counts down.
Risk metrics as var and es : Describe and show application such risk metrics as VaR and ES (expected shortfall) using historical and parametric approach.
What is the probability that a buyer chosen at random : What is the probability that a buyer chosen at random will have a product failure during the first year of warranty?-  During the second year of warranty?
Derive the price of a medallion : Suppose a taxicab company is expected to earn annual above-normal profits of $10,000. Assume the interest rate is 5%. a. Derive the price of a medallion if entry regulation is expected to continue forever.
Sketch a schematic of your design : Design the 32-bit prefix adder in an HDL. Simulate and test your adder to prove that it functions correctly.
Benefits and marginal costs of gasoline consumption : "Let the marginal benefits and marginal costs of gasoline consumption (where Q=gallons) be:
Discuss your thoughts on working with children : Read ADD/ADHD Alternatives in the Classroom and Implications of Changes for the Field: ADHD. In your post, discuss your thoughts on working with children/adolescents in the classroom setting. Should teachers be trained to work with these students ..
Design a 32-bit floating-point multiplier in an hdl : Design a 32-bit floating-point multiplier in an HDL. Simulate and test your multiplier to prove to a skeptic that it functions correctly.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Is their product inexpensive or moderate or high prices

Is their product inexpensive or moderate or high prices? How do they compare to the same products in other countries?

  What happens to consumer surplus

In a small country model, when a tariff is added by an importing nation to the world price

  How do you calculate real growth per capita

How do you calculate real growth per capita ? what is the formula?

  Static classical ad or yp model

Using the static classical AD/YP model, demonstrate the effect of each of the following changes.

  Brief analysis about monopolistic competitive market

List the four assumptions for the Monopolistic competition model. Now explain how the market will adjust in the long run and draw a corresponding graph for the representative firm in the long run. (Explain your answer.)

  Examine the impact of us population

Examine the impact of U. S. population demographic changes on the demand for different goods

  How is the fed instrumental in establishing economic growth

When looking at the role of the Fed, how is the Fed instrumental in establishing economic growth? Why does the Fed provide stability in our economy

  Quotations for numerous currencies

The "Market" section of the Bloomberg website provides interest rate quotations for numerous currencies. Its address is www.bloomberg.com.

  Give an example of a fairly major purchasing decision

Give an example of a fairly major purchasing decision you've made in your lifetime. How did you justify the purchase.

  Comment on economic analyses of health administrative

Analyze and comment on economic analyses of health administrative innovations that are germane to the provision of health services. How have these innovations become more important in health care delivery within the context of the Affordable Care ..

  Elucidate what output level does average variable cost reach

Elucidate what output level does average variable cost reach its minimum value. What is the value (in dollars) of the average variable cost at its minimum point.

  1nbspnbsp briefly define the following termsanbspnbspnbsp

1.nbspnbsp briefly define the following termsa.nbspnbspnbsp potential gdpb.nbspnbspnbsp long-run aggregate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd