(a)[3]
Explain the difference between a fixed cost and a variable cost, then give one example of each from the article.
(b)[5]
Cross-subsidisation occurs when buyers of one product are charged a higher price so that buyers of another product can be charged a lower price. Identify one example of cross-subsidisation from the article and judge whether it can be justified.
(c)[5]
Analyse whether there is any evidence that the market structure for New York taxis might be described as a monopoly.
(d)[7]
Identify two kinds of local government intervention allowed in 2018 and discuss how these may affect the profits of taxi owners.