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up for lunch, but so far has not done so. In particular, she is concerned that most people in the area buy lunch from one

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up for lunch, but so far has not done so. In particular, she is concerned that most people in the area buy lunch from one of the many food trucks that park every day in a parking lot across the street. Before deciding what to do next, Molly has asked you to research the food trucks that come by every day for lunch. You find the following: Each food truck is operated by one worker. All trucks serve a Blandand lunch box and charge $7. There is no tax or additional charges leviad (Chose are "each only operations). One truck owner complained that there was no customer loyalty: any truck with a higher price Bore no customers that day; those customers would insiced go to another truck. . Over the past month, you have eaten at every truck and found they were basically identical. One operator told you that in past yours the number of food trucks was Blendily increasing, and prices were decreasing, but in meant months the market has been Bushle, with no changes in the number of trucks, the price of lunch, or the number of customers served. You discover that all the owners rent the physical truck for $150/day from a local company (which had plenty of trucks available for anyone who wanted), and anyone could hire a trained worker at $40/day Lo operate the truck and serve lunchra. . Every truck has to pay the City for a daily permit which allows it to park and serve lunches. This permit costs the same for all trucks, regardless of how much they sell. Unfortunately, you forgot to write down how much that permit is! Ooops! Hach truck has an identical total variable cost function (per day] of VO(q) - iq | 0.lly whereq is the number of lunches served. With this function, each truck's marginal cost curve is MOX(q) - 3 | 0.04g. Answer each of the parts below, clearly indicating your answers. You must explun your reasoning / show your work for full credit. (a) Based on the information above (and only the information above, don't make up other things), list. all the items that comprise the fixed costs of running a food truck. b) What is the minimum value of the average total cost function for a food truck meal? (It is possible to give a number.) Explain. (c) Suppose that further research reveals that the overall market demand for food truck lunches is given by 9 -3730-350P. Where 9,, is the total quantity of food truck lunches demanded (per day) in the parking lot merces the street from Molly's restaurant, and P is the market price of a food truck lunch in dollars. The city decides to limit the number of food trucks that may operate in the parking lot to 10. (However, They don't change the price of the permit.) What price (for a lunch) do you expect to prevail onee this limit is implemented? (Hint: You have demand. Think shout supply. Fired think about each individual truck's supply curve. Then you can get the market supply curve.) (d) How does the permit limit will affect consumer surplus in this market? (A quantitative answer is heel. If you can't give that, then explain qualitatively.}

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