Exercise 13 Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose that the maximum number of hot dogs that any one vendor can sell is 50 per day. If the price of a hot dog is $2.00, how many hot dogs does each vendor want to sell? Each vendor will want to sell 50 hot dogs. (Enter your response as an integer.) If the industry is perfectly competitive, will the price remain at $2.00 for a hot dog? If not, what will the price be? Assuming the industry is perfectly competitive, the price of a hot dog will fall to a price of $ 1.50 per hot dog. (Enter your response rounded to two decimal places.) If each vendor sells exactly 50 hot dogs a day and the demand for hot dogs from vendors in the city is QD = 8800 - 600P, how many vendors are there? In long-run equilibrium, there will be 158 vendors. (Enter your response as an integer.) Suppose the city decides to regulate hot dog vendors by issuing permits. If the city issues only 10 permits and if each vendor continues to sell 50 hot dogs a day, what price will a hot dog sell for? Hot dogs will sell for $ each. (Enter your response rounded to two decimal places.) Enter your answer in the answer box and then click Check