In many large U.S. cities, taxicab companies operate as near monopolies because of

A) patents.
B) licenses.
C) economies of scale.
D) strategic pricing.

Question

In many large U.S. cities, taxicab companies operate as near monopolies because ofA) patents.B) licenses.C) economies of scale.D) strategic pricing.

Peaceful Hearts · Accepted Answer

Final Answer : B, Explanation :  Taxicab companies in many large U.S. cities operate as near monopolies primarily due to the requirement of licenses, which are often limited in number by local governments, restricting the entry of new competitors into the market.

In many large U.S. cities, taxicab companies operate as near monopolies because of

A) patents.
B) licenses.
C) economies of scale.
D) strategic pricing.

Definitions

Learning Objectives

Learning Objectives

Related questions