Number of hot dog stand operating throughout the downtown

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Consider a city that has a number of hot dog stand 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 that the maximum number of hot dogs that any one vendor can sell is 50 per day  If the price of a hot dog is $2.00, how many hot dogs does each vendor want to sell?

Each vendor will want to sell___hot dogs.

If the industry is perfectly competitive, will the price remain at $2.00 for a hot dog? If not, what will the price be?

Assuming the industry is perfectly competitive, the price of a hot dog will________ a price of $______per hot dog

If each vendor sells exactly 50 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 long-run equilibrium, there will be _____Vendors

Suppose the city decides to regulate hot dog vendors by issuing permits. If the city issues only 10 permits and if each vendor continues to sell 50 hot dogs a day, what price will a hot dog sell for?

Hot dogs will sell for $_____each.

Suppose the city decides to sell the permits. What is the highest price That a vendor would pay for a permit?

A vendor would pay a maximum of $___for a permit

Reference no: EM13697500

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