Answer to Question #152736 in Management for dina

Question #152736
The New York City Parks Department doubled the annual fee for the hot-dog pushcart
that had the exclusive license for the spot just south of the Metropolitan Museum of Art
to $288,000. Why would anyone pay almost $300,000 for a pushcart license? Who is
obtaining the economic rent for the obviously lucrative pushcart location? How much
economic profit is the pushcart owner probably earning?
1
Expert's answer
2020-12-25T04:26:56-0500

The state government is the one that issues licenses to businesses. The economic rent goes to the state government but the citizenry is the ultimate beneficiary. The reason is that the economic rent goes to the state with the owner also making huge profits. The pushcart owner probably earns at least $600,000, which is double what they will pay.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS