The burrito truck industry in the city is perfectly competitive. On any given evening, the market demand for burritos is given by Qp = 88 - P: where QD is the quantity of burritos demanded per evening, and p is the price of a burrito. Each burrito seller must pay $50 per day to rent a burrito truck. In addition, the cost of ingredients for each burrito is $3, regardless of how many burritos are sold. Given space constraints, each burrito truck is able to serve a maximum of 10 customers per evening. In a long-run equilibrium in the burrito industry, the number of sellers (burrito trucks) in the market every evening will be _____

The burrito truck industry in the city is perfectly competitive. On any given evening, the market demand for burritos is given by Qp = 88 - P: where QD is the quantity of burritos demanded per evening, and p is the price of a burrito. Each burrito seller must pay $50 per day to rent a burrito truck. In addition, the cost of ingredients for each burrito is $3, regardless of how many burritos are sold. Given space constraints, each burrito truck is able to serve a maximum of 10 customers per evening. In a long-run equilibrium in the burrito industry, the number of sellers (burrito trucks) in the market every evening will be _____

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 9MC

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