2. There is only one hot dog vendor at Yankee Stadium. H0, 09,; Stadium _ The vendor always prices hot dogs in multiples of 25 cents \"5\" 501.3 (e.g., $0.50, $2.75, $5.50, etc.) in order for his staff to be 55.00 5" $7.00 2,000 able to make exact change easily. During a sold-out Red :13: :3 Sox-Yankees game, the vendor knows from long 05:50 0:000 experience the demand curve for hot dogs, which is given 3:33 3:333 in the table on the right. 34.25 10,500 $4.00 20,500 53.75 23,750 (a) The vendor's marginal cost of cooking, fixing and providing a hot dog is $1.50. 33:3 3333 What price should the vendor charge and how many hot dogs would you expect $3: 333$ the vendor to sell? 02.50 45:500 $2.25 51,000 32.00 57,000 (b) The vendor notices that one feature of Yankee Stadium is :12: 2533 Bleacher Grandstand ' ' 1421.003 Hmmg Homog that the bleachers and the grandstand seats have separate :1-25 50,000 me . 1.00 71,000 M entrances, so fans cannot sneak from one sectlon to another. 00.05 74.000 37-00 2,000 The demand curves for hot dogs in the two sections are given in 90.50 770'\" 33:33 33$ the table to the left. Should the vendor choose different prices (and sales :33 192.03] targets) for each set of spectators? Explain what prices the vendor should 54:50 15:25.) set and why. $4.25 200 17,300 34.00 1,000 19,500 33-75 1500 22.250 (c) Just hours before the game, the vendor' s maln kitchen experiences a $3.50 2,200 25,500 _ , _ _ _ _ , _ _ _ 53.25 3,000 20,000 major electrlcal problem, shuttlng down the majorlty of Its cooking faCIIItIes. $3.00 4.400 31.600 - . 32.75 5.500 34.500 The unlt cost of $1.50 per hot dog remalns unchanged, but hot dog 5250 9.000 36.500 production capacity is reduced to only 8,000 units. Suppose that the vendor 32.25 12,500 38,500 52.00 14,150 42,250 has the freedom to change prices in light of the production constraint in 3333 33% 33333 order to maximize prots from this game's sales and that, as in part (b), the :13: 3% 33:3 vendor can sell hot dogs for different prices in the bleachers and grandstand. 30.75 23,500 50.500 What prices should the vendor set for bleacher and grandstand hotdogs, and w how many hot dogs do you expect the vender to sell in each location