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Homework8_section7(1)

Homework8_section7(1) - the price is below \$8 and 4 meals...

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Experiment 8 Section 7 Problem 8.1 Part a. Number of restaurants opened: Session 1, Round 1 11 Session 1, Round 2 6 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 39 -\$220.00 Short-Run Competitive Equilibrium in the Last Round \$12 24 \$48.00 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 \$9.37 38 -\$53.76 Session 2, Last Round \$12.69 24 \$64.50 Problem 8.4 Part a) Number of Restaurants: Session 2, Round 1 5 \$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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Session 2, Round 2 7 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 20-\$20.00 Short-Run Competitive Equilibrium in Last Round \$8 27-28-\$140.00 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 \$14.90 20 \$38.00 Session 2, Round 2 \$12.42 26-\$25.00 Problem 8.6, Part b) no \$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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Homework8_section7(1) - the price is below \$8 and 4 meals...

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