Find how many rides will the driver provide now

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A taxi driver picks up passengers at a city airport. he's a price taker and profit-maximizer. The regulated price for rides to downtown from the airport is $40. His costs are given by the following function:

TC = 100 + 20q + 0.1q2

Q being the quantity he produces

1) How many taxis will he provide? What are the profits?

2) Assume the city imposes a new requirement for a $100 per year taxi license fee for all drivers. Assume the regulated price remains fixed at $40. how many rides will the driver provide now and what are his profits?

3) Assume the the city requires all drivers to pay a $10 fee for each ride. With the price remaining fixed at 40, how many rides will he provide and what will the profits be?

Reference no: EM13238249

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