The growth of ride-sharing services such as Uber and Lyft has generated much discussion in the news. Drivers operate as independent businesses, working as many hours as they choose and earning a portion of the fares. Fares are set by the company, with market prices increasing during periods of high demand, such as "surge" pricing by Uber. From the driver's perspective, ride-sharing companies share many characteristics with perfectly competitive firms.
Which of the following is not a characteristic found in ride-sharing companies?
The short-run supply curve is nonexistent.
Drivers do not have control of the prices.
Supply is determined by the marginal cost incurred by each driver.
Drivers face few barriers to entry.