Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands n the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market 50 45 PC Outcome 4.0 35 3.0 2,5 + 20 15+ 10 05 + 45 s0 115 100 225 270 315 360 450 QUANTITY (Hot dogs) PRICE (Dolare per hot dog)

Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands n the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market 50 45 PC Outcome 4.0 35 3.0 2,5 + 20 15+ 10 05 + 45 s0 115 100 225 270 315 360 450 QUANTITY (Hot dogs) PRICE (Dolare per hot dog)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.11P

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