are there in the long-run equilibrium? There are () vendors in the long run. d) Suppose the city decides to regulate hot dog vendors by issuing permits. If the city issues only 20 permits and if each vendor continues to sell 100 hot dogs a day, what price will a hot dog sell for? The price will be $() per hot dog.
Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose the maximum number of hot dogs that any one vendor can sell is 100 per day.
Please enter numbers only, for example, 22 for quantity or 1.20 for
a) If the price of a hot dog is $2, how many hot dogs does each vendor want to sell?
- () hot dogs per day
b) If the industry is
- The price will be $() per hot dog.
c) If each vendor sells exactly 100 hot dogs a day and the demand for hot dogs from vendors in the city is QD = 4400 - 1200P, how many vendors are there in the long-run equilibrium?
- There are () vendors in the long run.
d) Suppose the city decides to regulate hot dog vendors by issuing permits. If the city issues only 20 permits and if each vendor continues to sell 100 hot dogs a day, what price will a hot dog sell for?
- The price will be $() per hot dog.
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