Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 19

Calculate the eight-hour-shift costs of operating a taxi with a medallion license that cost $125,000 borrowed at 10 percent interest assuming two shifts for 365 days per year, plus a $25,000 car that depreciates 50 percent in one year, plus $22for gas and maintenance per shift per day. Would you pay $60/shift for a taxi operator's license Why or why not