Explain why taxi companies are fighting uber and lyft

Reference no: EM132148903

Question: Since Uber has entered the transportation market, taxi services have declined significantly. Using economic terms, explain why might that be the case and given that the New York Taxi market is subject to a quota, explain how has Uber's entrance into the transportation impacted the value of medallions (recall that the wedge represents the value that accrues to license holders)? Some of Gene Freidman's taxi companies had to file bankruptcy due to a "liquidity problem." When Gene, and other medallion holders, bought the medallions they typically would take out loans to purchase the medallions.The loan represented the value of the medallion at the time. Explain what would happen when the price of medallions drops and less folks are using taxis, and explain why taxi companies are fighting Uber and Lyft.

Reference no: EM132148903

Questions Cloud

Project selection process in construction project : What is different in a project selection process in a construction project? Write a project charter and a scope for this project.

What can the fiscal policy makers do to move the economy : What can the fiscal policy makers do to move the economy from your answer in (b) back to full employment? What would the effect of the policies be on inflation.

Why some juveniles participate in delinquent activities : The structure and dynamics of a family unit have been attributed to reasons why some juveniles participate in delinquent activities.

Sustainable in the sense of lasting long time as business : What is your evaluation of the prospects of Teespring being sustainable in the sense of lasting a long time as a business?

Explain why taxi companies are fighting uber and lyft : Since Uber has entered the transportation market, taxi services have declined significantly. Using economic terms, explain why might that be the case.

Discuss the incremental impact of a hypothetical : Discuss the incremental impact of a hypothetical, but reasonable, simple new investment project, such as a new product or facility or a cost-cutting investment

Customers an opportunity to develop their creativity skills : In what way does Teespring provide its customers an opportunity to develop their creativity skills?

Discuss two fiscal policy options : To slowdown the economy and prevent overheating (inflationary pressure buildup), fiscal and/or monetary policies can be employed. Using Aggregate Demand.

How do changes in income affect consumption : How do changes in income affect consumption (and saving)? What are factors other than income that can affect consumption?

User Account

All Pages