1 Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the followingtable. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit.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 per unit for each level of output listed in the table?OutputTCMCATC25,000 $100,0000.550,000150,00075,000187,5002.5100,000275,5003b. Is this a decreasing-cost industry?(Click to select)c. Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is75,000,000 bottles. How many firms will there be in this industry?firm(s)d. Suppose that, instead, the market quantity demanded at a price of $2.50 is only 75,000. How many firms do you expect there to bein this industry?firm(s)Prev1 of 50Next >

a) Output TC MC ATC 25000 100000 0.5 100000/25000= 4 50000 150000 1 150000/50000= 3 75000…

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. 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 per unit for each level of output listed in the table? Output TC MC ATC 25,000 2$ 100,000 0.5 50,000 150,000 75,000 100,000 187,500 2.5 275,500 3 b. Is this a decreasing-cost industry? (Click to select) c. Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded 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 $2.50 is only 75,000. How many firms do you expect there to be in this industry? firm(s)

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. 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 per unit for each level of output listed in the table? Output TC MC ATC 25,000 2$ 100,000 0.5 50,000 150,000 75,000 100,000 187,500 2.5 275,500 3 b. Is this a decreasing-cost industry? (Click to select) c. Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded 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 $2.50 is only 75,000. How many firms do you expect there to be in this industry? firm(s)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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