Question

S1: The proposed highway expansion should be rejected

S2: Evidence suggests that bigger freeways often have even more traffic problems than smaller ones.
S3: The highway expansion will also place an unnecessary tax burden on the county.

Answer 1

The taxicab industry in large cities may benefit from economies of scale, resulting in lower prices for consumers. However, there are also challenges such as high costs and regulatory barriers that may limit the extent of these cost advantages.

Step-by-step explanation:

The subject of this question is Social Studies. The question is about whether the taxicab industry in large cities would be subject to significant economies of scale. Economies of scale refer to the cost advantages that come with increased production or operation. In the context of the taxicab industry, this means that as the industry grows and more taxis are in operation, the cost per taxi may decrease, resulting in lower prices for consumers.

In large cities, where there is high demand for taxis, it is possible that the taxicab industry can benefit from significant economies of scale. With more taxis on the road, customers may experience shorter wait times and more efficient transportation. Additionally, the increased competition among taxi companies may lead to lower fares for consumers.

However, it is important to consider other factors that may hinder economies of scale in the taxicab industry. For example, the cost of acquiring and maintaining a large fleet of taxis can be expensive. Regulatory barriers and limited access to licenses and permits can also limit the growth of the industry. Therefore, while economies of scale are possible in the taxicab industry in large cities, there are also challenges that may prevent significant cost advantages.