Suppose pizzerias and sushi bars experience roughly the same economies of scale, with a common minimum market size of 200,000 meals per year. The per- capita demand for pizza is 20 meals per year and the per-capita demand for sushi is 4 meals per year. Suppose you move from a city with a population of 20,000 to a city with a population of 60,000. a. The number of pizzerias will change from [_____] to [_____] b. The number of sushi restaurants will change from [_____] to [_____] Illustrate the initial conditions for both pizzerias and sushi bar in a graph
Suppose pizzerias and sushi bars experience roughly the same economies of scale, with a common minimum market size of 200,000 meals per year. The per- capita demand for pizza is 20 meals per year and the per-capita demand for sushi is 4 meals per year. Suppose you move from a city with a population of 20,000 to a city with a population of 60,000. a. The number of pizzerias will change from [_____] to [_____] b. The number of sushi restaurants will change from [_____] to [_____] Illustrate the initial conditions for both pizzerias and sushi bar in a graph
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose pizzerias and sushi bars experience roughly the same economies of scale, with a common minimum market size of 200,000 meals per year. The per- capita demand for pizza is 20 meals per year and the per-capita demand for sushi is 4 meals per year. Suppose you move from a city with a population of 20,000 to a city with a population of 60,000.
a. The number of pizzerias will change from [_____] to [_____]
b. The number of sushi restaurants will change from [_____] to [_____]
Illustrate the initial conditions for both pizzerias and sushi bar in a graph
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