What is the expected profit for a food vendor

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New York Food Vendors Food trucks have become increasingly popular in New York City. However, the Department of Health limits the number of permits that they issue at one time. As a result, the estimated value of a permit is $15,000 for two years, while the filing cost is only approximately $200. Additionally, many vendors enter into partnerships, sharing permits or pay fixers to arrange them [“Turf War at the Hot Dog Cart,” New York Times, June 30, 2009]. Is the food vendor industry in a competitive environment? Why or why not? Is the long-run supply curve flat? What is the expected profit for a food vendor?

Reference no: EM131009974

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