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hwk8sec11 - the price is below $8 and 4 meals if the price...

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Experiment 8 Section 11 Problem 8.1 Part a. Number of restaurants opened: Session 1, Round 1 10 Session 1, Round 2 8 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 38 -$200.00 Short-Run Competitive Equilibrium in the Last Round $8 32 -$64.00 Long-Run Competitive Equilibrium $12 24 $48.00 Table 8.8: Experimental Outcomes, Session 1 Mean Number of Restaurants' Price Meals Total Profits Session 1, First Round $11.02 28 -$31.52 Session 2, Last Round $10.58 30 $7.52 Problem 8.4 Part a) Number of Restaurants: Session 2, Round 1 6 Session 2, Round 2 6 $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
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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
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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 $12 24-$24.00 Short-Run Competitive Equilibrium in Last Round $12 24-$24.00 Long-Run Competitive Equilibrium $18 16 $80.00 Problem 8.5, Part b) More Than Problem 8.6, Part a) Table 8.10: Experimental Outcomes, Session 2 Mean Number of Restaurants' Price Meals Total Profits Session 2, Round 1 $12.75 22-$15.54 Session 2, Round 2 $12.98 20-$20.46 Problem 8.6, Part b) No (Same) $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...
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