Question

If a government quota limit at 6 million rides is imposed, the quota rent accruing to the owner of a taxi medallion will be _____ per ride, but there will be a total missed opportunity (inefficiency) to consumers and producers of _____ million rides.

Answer 1

$1; 1

Step-by-step explanation:

In this case, if a $1 is the quota rent which is accrued to the owner of a taxi medallion per ride. The consumers and producers with 1 million rides will not be able to meet the quota limit, which is described to be 6 million rides.

This is because , the money that will be accrued by them will never be up to what the government has made as the limit. and this will be a total missed opportunity.

In the case, they will be put into doing extra tedious work to meet the limit or never meet the limit , unless it is reduced.

Answer 2

The answers are; $1 & 1

Step-by-step explanation:

If a government quota limit at 6 million rides is imposed, the quota rent accruing to the owner of a taxi medallion will be 1$ per ride, but there will be a total missed opportunity (inefficiency) to consumers and producers of 1 million rides.