hw6_section16

# hw6_section16 - the price is below \$8 and 4 meals if the...

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

Experiment 8 Section 16 Problem 8.1 Part a. Number of restaurants opened: Session 1, Round 1 6 Session 1, Round 2 7 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 \$8 24 -\$48.00 Short-Run Competitive Equilibrium in the Last Round \$5 27 -\$140.00 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 \$10.91 21 \$4.19 Session 2, Last Round \$9.21 27 -\$26.20 Problem 8.4 Part a) Number of Restaurants: Session 2, Round 1 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

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

View Full Document
Session 2, Round 2 4 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
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 18-27-\$120.00 Short-Run Competitive Equilibrium in Last Round \$12 16-\$16.00 Long-Run Competitive Equilibrium 13 to 18 12 0-40 Problem 8.5, Part b) more Problem 8.6, Part a) Table 8.10: Experimental Outcomes, Session 2 Mean Number of Restaurants' Price Meals Total Profits Session 2, Round 1 \$9.49 20-\$90.25 Session 2, Round 2 \$12.31 16-\$11.01 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

hw6_section16 - the price is below \$8 and 4 meals if the...

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

View Full Document
Ask a homework question - tutors are online