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What are the demand-, supply-, and cost function?

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To operate a taxi in a certain city you need a car, which costs USD 25000, and a (tradable) permit from the city which costs USD 100 per year. Suppose that all taxi trips are on a 10mile-long street.

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  1. You have not supplied sufficient information, how much income is generated per trip.

    This would not be a supply/cost analysis, this would be a break-even analysis, which would include the price of gas, maintenance and fees

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