ts would be inefficient.  The tax revenue earned by the Austrian government is more important than the inefficiency caused by the tax.  The tax revenues should be used to subsidize Austrian taxi rides, making them more economical.  _______________________________________________________________________________________ In Montana, the median earnings per trip for an Uber driver is $29.34, the average earnings/ trip for a Lyft driver is $28.62, and the average earnings/ trip for a taxi driver

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.13P
icon
Related questions
Question

Label the following phrases Normative or positive: 

The Austrian government should protect Austrian taxi manufacturers by install a tax. 

A tax on taxi imports would be inefficient. 

The tax revenue earned by the Austrian government is more important than the inefficiency caused by the tax. 

The tax revenues should be used to subsidize Austrian taxi rides, making them more economical. 

_______________________________________________________________________________________

In Montana, the median earnings per trip for an Uber driver is $29.34, the average earnings/ trip for a Lyft driver is $28.62, and the average earnings/ trip for a taxi driver is $17.22.

Optimal behavior assumed, what is the opportunity cost of the driver’s employment decision per ride? Assume the driver can only work for one company at a time. 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Global Warming
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning