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Homework8_section3(1)

# Homework8_section3(1) - the price is below \$8 and 4 meals...

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Experiment 8 Section 3 Problem 8.1 Part a. Number of restaurants opened: Session 1, Round 1 10 Session 1, Round 2 10 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 35 -\$200.00 Short-Run Competitive Equilibrium in the Last Round \$5 35 -\$200.00 Long-Run Competitive Equilibrium 10 to 12 24 0 - 48 Table 8.8: Experimental Outcomes, Session 1 Mean Number of Restaurants' Price Meals Total Profits Session 1, First Round \$8.99 34 -\$64.50 Session 2, Last Round \$8.29 31 -\$98.00 Problem 8.4 Part a) Number of Restaurants: Session 2, Round 1 7 \$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 5 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 \$8 27-28-\$140.00 Short-Run Competitive Equilibrium in Last Round \$12 20-\$20.00 Long-Run Competitive Equilibrium 13 to 18 16 0-80 Problem 8.5, Part b) depends on which price in range Problem 8.6, Part a) Table 8.10: Experimental Outcomes, Session 2 Mean Number of Restaurants' Price Meals Total Profits Session 2, Round 1 \$11.08 25-\$62.99 Session 2, Round 2 \$14.04 19 \$14.70 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...
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