Explain the economics of taxi permits

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Question: In some major us and european cities, it is very difficult to find a taxi because city authorities limit the number of permits ( known as medallions, in new your city). In 2014, the cost of a taxi medallion was near 1 milion, but now it is about 80,000 (from a low of 25,000).

Explain the economics of taxi permits ( cost and benefit of participants )

 

Reference no: EM133341651

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