Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands n the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market 50 45 PC Outcome 4.0 35 3.0 2,5 + 20 15+ 10 05 + 45 s0 115 100 225 270 315 360 450 QUANTITY (Hot dogs) PRICE (Dolare per hot dog)
Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands n the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market 50 45 PC Outcome 4.0 35 3.0 2,5 + 20 15+ 10 05 + 45 s0 115 100 225 270 315 360 450 QUANTITY (Hot dogs) PRICE (Dolare per hot dog)
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.11P
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Question
![Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the
city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power
The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs.
Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition.
Competitive Market
50
45
PC Outcome
4.0
635
3.0
2,5 +
20
15+
10
05+
45 90
116 100
225 270
315 360
405
450
QUANTITY (Hot dogs)
PRICE (Dolere per hot dog)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3e2e4d4-16e3-43c1-b766-75b9d872ced1%2Fc8268407-0b8f-4bbc-ba1d-685fcc32a05c%2Fde5mfz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the
city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power
The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs.
Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition.
Competitive Market
50
45
PC Outcome
4.0
635
3.0
2,5 +
20
15+
10
05+
45 90
116 100
225 270
315 360
405
450
QUANTITY (Hot dogs)
PRICE (Dolere per hot dog)
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