Assume that the most efficient production technology available for making vitamin pilis has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output 25,500 50,500 75,500 100,500 TC 105,000 $ 155,000 192,500 280,500 MC 0.55 1.05 2.55 3.05 ATC b. Is this a decreasing-cost industry? (Click to select) c. Suppose that the market price for a bottle of vitamins is $2.55 and that at that price the total market quantity demanded is 113,250,000 bottles. How many firms will there be in this industry? firm(s). d. Suppose that, instead, the market quantity demanded at a price of $2.55 is only 75,500. 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)
Assume that the most efficient production technology available for making vitamin pilis has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output 25,500 50,500 75,500 100,500 TC 105,000 $ 155,000 192,500 280,500 MC 0.55 1.05 2.55 3.05 ATC b. Is this a decreasing-cost industry? (Click to select) c. Suppose that the market price for a bottle of vitamins is $2.55 and that at that price the total market quantity demanded is 113,250,000 bottles. How many firms will there be in this industry? firm(s). d. Suppose that, instead, the market quantity demanded at a price of $2.55 is only 75,500. 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)
Chapter1: Making Economics Decisions
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Transcribed Image Text:Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of
vitamins produced per day and that costs include a normal profit.
a. What is ATC per unit for each level of output listed in the table?
Instructions: Round your answers to 2 decimal places.
Output
25,500
50,500
75,500
100,500
TC
105,000 $
155,000
192,500
280,500
MC
0.55
1.05
2.55
3.05
ATC
b. Is this a decreasing-cost industry?
(Click to select).
c. Suppose that the market price for a bottle of vitamins is $2.55 and that at that price the total market quantity demanded is 113,250,000 bottles. How many firms will there be in this industry?
firm(s).
d. Suppose that, instead, the market quantity demanded at a price of $2.55 is only 75,500. 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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