Question 4 1.5 pts Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose t

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Question 4 1 5 Pts Consider A City That Has A Number Of Hot Dog Stands Operating Throughout The Downtown Area Suppose T 1 (55.34 KiB) Viewed 22 times

Question 4 1.5 pts 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 150 per day. Please enter numbers only for example, 22 for quantity or 1.20 for price. a) If the price of a hot dog is $2.5, how may hot dogs does each vendor want to sell? hot dogs per day b) If the industry is perfectly competitive, will the price remain at $2.5 for a hot dog? If not, what will the price be? • The price will be $ per hot dog. c) If each vendor sells exactly 150 hot dogs a day and the demand for hot dogs from vendors in the city is Qº = 4800 - 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 12 permits and if each vendor continues to sell 150 hot dogs a day, what price will a hot dog sell for? The price will be $ per hot dog.