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A new production technology for making vitamins is invented by a University 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, enter your responses in the gray-shaded cells and 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? TC ATC Output 25,000.00 $ 50,000.00 $ 75,000 00 $ 100,000.00 $ 60,000.00 80,000.00 85,000 00 90,000.00 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 $95.000 and 150,000 bottles per day would generate total costs of $100,000). Is this a decreasing-cost industry? [(Click to select) that at that price the total quantity demanded by consumers is 75.000.000

A new production technology for making vitamins is invented by a University 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, enter your responses in the gray-shaded cells and 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? TC ATC Output 25,000.00 $ 50,000.00 $ 75,000 00 $ 100,000.00 $ 60,000.00 80,000.00 85,000 00 90,000.00 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 $95.000 and 150,000 bottles per day would generate total costs of $100,000). Is this a decreasing-cost industry? [(Click to select) that at that price the total quantity demanded by consumers is 75.000.000

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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Problem 11-4 (Algo) A new production technology for making vitamins is invented by a University 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, enter your responses in the gray-shaded cells and round your answers to 2 decimal places. In parts cand 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 $ 50,000.00 $ 75,000 00 $ 100,000.00 $ 60,000.00 80,000.00 85,000 00 90,000.00 A 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 $95.000 and 150,000 bottles per day would generate total costs of $100,000). Is this a decreasing-cost industry? (Click to select) mine is $1.53 and that at that price the total quantity demanded by consumers is 75.000.000 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 $95,000 and 150,000 bottles per day would generate total costs of $100,000). Is this a decreasing-cost industry? (Click to select) c. Suppose that the price of a bottle of vitamins is $1.53 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 atla price of $1.53 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? [(Click to select)
Transcribed Image Text:Problem 11-4 (Algo) A new production technology for making vitamins is invented by a University 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, enter your responses in the gray-shaded cells and round your answers to 2 decimal places. In parts cand 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 $ 50,000.00 $ 75,000 00 $ 100,000.00 $ 60,000.00 80,000.00 85,000 00 90,000.00 A 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 $95.000 and 150,000 bottles per day would generate total costs of $100,000). Is this a decreasing-cost industry? (Click to select) mine is $1.53 and that at that price the total quantity demanded by consumers is 75.000.000 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 $95,000 and 150,000 bottles per day would generate total costs of $100,000). Is this a decreasing-cost industry? (Click to select) c. Suppose that the price of a bottle of vitamins is $1.53 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 atla price of $1.53 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? [(Click to select)
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