What question did this study set out to answer?

The aim is to investigate the economies of scale present in the taxicab industry and how trip volume affects costs.

Economies of Scale in the Taxicab Industry: Some Empirical Evidence from the United States

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Empirical analysis finds U-shaped cost curve for taxicab firms in the United States based on trip volume.

The aim is to investigate the economies of scale present in the taxicab industry and how trip volume affects costs.
Analyzed cost trends of taxicab firms in the United States
Measured average costs against number of trips per year
Identified the point where costs start to increase
Small taxicab firms experience economies of scale
Average costs increase for firms completing over 75,000 trips annually
Confirmed existence of a U-shaped cost curve in the industry

Pagano et al. (1983) studied this question.

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