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Perfect competition-oligopoly or monopolistic competition

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Please consider the market (supply and demand) of Uber drivers. The Uber driver supply curve contains all the current and potential employees willing to become Uber drivers (quantity for a given wage as wages are the price of labor).

(a) What kind of market do you believe Uber drivers most closely resemble - perfect competition, oligopoly or monopolistic competition and why? What do you expect will happen to the wage of Uber driver's over the longer term? Is the firm Uber a price maker or a price taker?

(b) Assume Uber faces public concerns over the wages of its drivers. Could the company could enact policies to increase driver salaries, especially given that anyone is free to become an Uber driver? If yes, what would you recommend? If no, why not?

Reference no: EM132007864

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