Every weekend more than 500 different vendors set up at the local farmers’ market, selling a variety of items from homemade prepared foods to fresh produce. Yolanda rents a booth each weekend at the farmers’ market to sell homemade tamales for $10 a dozen. Yolanda pays each of her four cousins $20 per hour to make the tamales on Friday evenings in the food truck she operates for weekday lunch service. Yolanda sells 60 dozen tamales each weekend at the farmers’ market, which takes her cousins four hours to make each Friday. The cost of ingredients for all the tamales totals $240 and the booth at the farmers’ market rents for $150 per weekend.

a. What market structure does this business most resemble? What characteristics lead you to this conclusion?

b. What would you expect to see happen in this business? Use the data in the problem to support your conclusions.

c. How would your calculations change if Yolanda were to develop a weekend lunch business that used the food truck kitchen’s capacity?