Answer to Question #228242 in Economics of Enterprise for Aselef

Question

Assume you are managing a firm that recently entered in the transportation service, which is meter taxi service similar with Ride, Feres and others. If you have to estimate the demand for the transportation service you provide, (6 marks) a. What would be the explanatory variables you include in a regression model? b. Indicate how you may utilize the results of your demand estimation for decisionmaking. c. How do you make your pricing decision? d. What do you think is the market structure for meter taxi transportation in Addis? Give your justifications

Answer 1

A (Dependent variables denoted as Y and independent variables denoted by X.

b) The result will help determine consumer behavior changes

C) By trying to understand consumer needs

D) It involves several drivers in a fleet of cars or taxis that are readily available, top managers who manage finances and other business operations. The main taxi app in Addis Ababa is known as Taxiye.