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A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and put into use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Instructions: In part a, round your answers to 2 decimal places. In parts c and d, enter your answers as whole numbers. a. What is ATC for each level of output listed in the table? Output TC ATC 25,000.00 $ 85,000.00 50,000.00 $ 105,000.00 75,000.00 $ 110,000.00 100,000.00 $ 115,000.00 b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Is this a decreasing-cost industry? Yes c. Suppose that the price of a bottle of vitamins is $2.03 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry? firm(s)

A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and put into use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Instructions: In part a, round your answers to 2 decimal places. In parts c and d, enter your answers as whole numbers. a. What is ATC for each level of output listed in the table? Output TC ATC 25,000.00 $ 85,000.00 50,000.00 $ 105,000.00 75,000.00 $ 110,000.00 100,000.00 $ 115,000.00 b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Is this a decreasing-cost industry? Yes c. Suppose that the price of a bottle of vitamins is $2.03 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry? firm(s)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Is this a decreasing-cost industry? Yes c. Suppose that the price of a bottle of vitamins is $2.03 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.03 is only 75,000. How many firms do you expect there to be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? No < Prev 2 of 9 Next > MacBook Air
Transcribed Image Text:b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Is this a decreasing-cost industry? Yes c. Suppose that the price of a bottle of vitamins is $2.03 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.03 is only 75,000. How many firms do you expect there to be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? No < Prev 2 of 9 Next > MacBook Air
A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and put into use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Instructions: In part a, round your answers to 2 decimal places. In parts c and d, enter your answers as whole numbers. a. What is ATC for each level of output listed in the table? Output TC ATC 25,000.00 2$ 85,000.00 50,000.00 $ 105,000.00 75,000.00 $ 110,000.00 100,000.00 $ 115,000.00 b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Is this a decreasing-cost industry? 5,000 (so Yes c. Suppose that the price of a bottle of vitamins is $2.03 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry? firm(s) Ac eraw Hill < Prev 2 of 9 Next > MacBook Air
Transcribed Image Text:A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and put into use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Instructions: In part a, round your answers to 2 decimal places. In parts c and d, enter your answers as whole numbers. a. What is ATC for each level of output listed in the table? Output TC ATC 25,000.00 2$ 85,000.00 50,000.00 $ 105,000.00 75,000.00 $ 110,000.00 100,000.00 $ 115,000.00 b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Is this a decreasing-cost industry? 5,000 (so Yes c. Suppose that the price of a bottle of vitamins is $2.03 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry? firm(s) Ac eraw Hill < Prev 2 of 9 Next > MacBook Air
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