Predict the equilibrium number of pizzerias beware of the, Econometrics

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Predict the equilibrium number of pizzerias beware of the

Beware the Too-Easy Answer. Your city initially restricts the number of pizzerias to one. The existing monopolist sells 3,000 pizzas per day. A pizzeria reaches the horizontal portion of its long-run average cost curve at an output of about 1,000 pizzas per day. Suppose the city eliminates the entry restrictions. Predict the equilibrium number of pizzerias. Beware of the TEC (too easy to be correct) answer.

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Econometrics: Predict the equilibrium number of pizzerias beware of the

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Econometrics: Predict the equilibrium number of pizzerias beware of the

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