hwk8sec8

hwk8sec8 - the price is below $8, and 4 meals if the price...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Experiment 8 Section 8 Problem 8.1 Part a. Number of restaurants opened: Session 1, Round 1 14 Session 1, Round 2 11 Part b), c), and d). Figure 8.4: Short-Run Supply and Demand-Session 1 Table 8.7: Competitive Equilibrium Predictions, Session 1 Mean Number of Restaurants' Price Meals Total Profit Short-Run Competitive Equilibrium in First Round $5 50 -$280.00 Short-Run Competitive Equilibrium in the Last Round $8 44 -$88.00 Long-Run Competitive Equilibrium $10-12 36 0-72 Table 8.8: Experimental Outcomes, Session 1 Mean Number of Restaurants' Price Meals Total Profits Session 1, First Round $7.52 45 -$166.50 Session 2, Last Round $7.81 44 -$96.50 Problem 8.4 Part a) Number of Restaurants: Session 2, Round 1 10 Session 2, Round 2 8 $0 $5 $10 $15 $20 $25 $30 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Number of Meals Price of Meals
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Part b) With a $3 sales tax, restaurants have a variable cost of $8 per meal. Each restaurant that is open will want to supply 0 meals if
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the price is below $8, and 4 meals if the price is greater than $8. Part c), d), and e). Figure 8.5: Short-Run Supply and Demand-Session 2 Problem 8.5 Table 8.9 Competitive Equilibrium Predictions, Session 2 Mean Number of Restaurants' Price Meals Total Profits Short-Run Competitive Equilibrium in First Round $8 36-40-$200.00 Short-Run Competitive Equilibrium in Last Round $13 32 $0.00 Long-Run Competitive Equilibrium $13 32 $0.00 Problem 8.5, Part b) Less than or equal Problem 8.6, Part a) Table 8.10: Experimental Outcomes, Session 2 Mean Number of Restaurants' Price Meals Total Profits Session 2, Round 1 $11.07 35-$92.50 Session 2, Round 2 $13.19 32 $6.00 Problem 8.6, Part b) yes $0 $5 $10 $15 $20 $25 $30 5 10 15 20 25 30 35 40 45 50 55 60 65 Number of Meals Price of Meals...
View Full Document

This note was uploaded on 12/25/2011 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

Page1 / 2

hwk8sec8 - the price is below $8, and 4 meals if the price...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online