Problem
Assume that the taxi industry in the town of New City is perfectly competitive. Also assume that the constant marginal cost of a taxi ride is $5 per trip and that each taxi is capable of making 20 trips a day. We will letthe demand function for taxi rides each daybe D(p) = 1,100 - 20p.
a) What is the perfectly competitive price of a taxi ride?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.