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. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output TC MC ATC 100,000 s 150,000 25,000 0.50 50,000 75,000 1.00 187.500 2.50 100,000 275,500 3.00 Is this a decreasing-cost industry? (Click to select) Suppose that the market price for a bottle of vitamins is $2.5 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). Suppose that, instead, the market quantity demanded at a price of $2.5 is only 75,000. How many firms do you expect there to be in this industry? firm(s). 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 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. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output TC MC ATC 100,000 s 150,000 25,000 0.50 50,000 75,000 1.00 187.500 2.50 100,000 275,500 3.00 Is this a decreasing-cost industry? (Click to select) Suppose that the market price for a bottle of vitamins is $2.5 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). Suppose that, instead, the market quantity demanded at a price of $2.5 is only 75,000. How many firms do you expect there to be in this industry? firm(s). Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? (Click to select)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 13.03 Homework • Answered If the average variable cost of producing 4 jeans at Jerry's factory is…

A: We know that, Total Cost(TC)= Total Fixed Cost(TFC)+Total Variable Cost(TVC),Average Variable…

Q: The table below represents costs for producing pairs of sunglasses. Calculate the marginal cost of…

A: Total cost(TC) refers to the overall expense incurred by a firm in the production of services or…

Q: Using the numbers representing short run costs in the chart below, calculate the number that belongs…

A: We have blank for MC at q=5.

Q: Sarah's copy shop can use four alternative plants. The figure shows the average total cost curves…

A: Answer - Long run average cost curve - The long-run average cost curve shows the cost of producing…

Q: that the dollar cost of producing X appliances is c(x) = 1000+70x-0.1x². ■ Find the average cost per…

A: Total cost is the cost incurred by the firm on the production of final goods and services. The total…

Q: If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is…

Q: Use the information contained in the three graphs below to answer the following question. Which of…

A: Fixed cost is the cost that remains fixed at all levels of output. This cost includes such as rent,…

Q: marginal cost

A: The marginal cost depicts the additional cost of an extra unit of output produced. As, the level of…

Q: What shapes would you generally expect each of the following cost curves to have: fixed costs,…

A: Cost curves shows how the cost of production changes when output/quantity changes.

Q: Consider the following cost information for a pizzeria: a. What is the pizzeria’s fixed cost?b.…

A: Meaning of Cost: Cost refers to the situation under which a firm occurs various expenses during the…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: To produce 100 bikes using 1 factory, short run average cost is $360.

Q: graph the marginal cost, average total cost, average variable cost on one graph based on the data…

A: The average cost is equal to the per unit cost. The average cost is equal to the total cost divided…

Q: QUESTION 6 Easy-toothy is a price-taking producer of tooth fairy's sling bags (these are bags for…

A: In a perfectly competitive market, firms are price takers because they do not have any control over…

Q: Output (q) VC MC AFC AVC AC 1 $100 $64 $164 $64 $100.00 $64.00 $164.00 2 112 212 48 50.00 56.00…

A: The table is completed below , where , FC: Fixed Cost VC : Variable Cost C: Total Cost MC :…

Q: The table below presents production data for a particular firm. 1) Use formulas/calculation in excel…

A: Total Fixed Cost = Total Cost - Total Varible Cost Total Fixed Cost = Total Cost - Total Varible…

Q: 210 270 315 4 380 475 630 On the following graph, plot Douglas Fur's average total cost (ATC) curve…

A: Fixed cost is independent of output produced. Thus required fixed cost is $120. Variable cost varies…

Q: The figure illustrates the short-run cost curves for a company that produces cell phones Identify…

A: The total cost curve represents the relationship between total cost and the level of output. The…

Q: QUESTION 18 Use the data in the following table to answer the question. Output Total cost (Units)…

A: Question 18 TFC = TC at 0 level of output TVC = TC - TFC AVC = TVC/Output ATC = TC/Output Now,…

Q: If the average variable cost of producing 4 jeans at Jerry's factory is $60, and the fixed cost of…

A: Total cost = Fixed cost + variable cost Variable cost = Average variable cost * quantity

Q: I want correct answer.....Please provide steps by step answer with proper and correct answer with…

A: Option a) $1,200: This option is incorrect because the average total cost (ATC) is calculated by…

Q: I remember from my omics classes that average ble cost (AVC) is equal to: can you tell me the…

A: The variable cost is $60 per worker a day. At 90 units of output (i.e. when 90 cars are washed in a…

Q: Ebba Kantzen says the following: "I am currently producing 10,000 pizzas per month at a total cost…

A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: The table below shows the weekly cost of producing cowboy hats. Complete the table by filling in…

A: Total cost is the sum of total fixed cost and total variable cost. Fixed cost remains same at all…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: The term total cost refers to the sum of all the costs that are used in the production of a…

Q: Consider the following cost information for a pizzeria a. What is the pizzeria's fixed cost? b.…

A: The total cost is defined as the monetary value of all the inputs used in the production of goods…

Q: The diagram to the right displays short-run cost curves for a facility that produces liquid crystal…

A: Total cost is the sum of Fixed and variable cost. Fixed cost is the cost that remains same at all…

Q: 1.7 Use the information in the graph to find the values for the following costs at an output level…

A: Total fixed cost refer to the total expenditure which remain fixed at all levels of output . It does…

Q: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…

A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

Q: Use the following table and use your previous calculations at what quantity of output does marginal…

A: Total cost is the sum of total fixed cost and total variable cost. Marginal cost is the addition to…

Q: 1. If the average cost of a plant to produce a "q" unit is explained by the functions below this: C…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Question

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.
What is ATC per unit for each level of output listed in the table?
Instructions: Round your answers to 2 decimal places.
Output
TC
MC
ATC
25,000
100,000 $
0.50
50,000
150,000
1.00
75,000
187,500
2.50
100,000
275,500
3.00
Is this a decreasing-cost industry?
(Click to select)
Suppose that the market price for a bottle of vitamins is $2.5 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).
Suppose that, instead, the market quantity demanded at a price of $2.5 is only
75,000. How many firms do you expect there to be in this industry?
) firm(s).
Review your answers to parts b, c, and d. Does the level of demand determine this
industry's market structure?
(Click to select)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Trending now

This is a popular solution!

Step by step

Solved in 7 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Answers clearly, don't copy paste. Mention part
The government imposes a $1000 per year license fee on all pizza restaurants. As a result, which cost curves shift? average total cost and average fixed cost average total cost and marginal cost average variable cost and marginal cost O average variable cost and average fixed cost
Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost, AVC, and average cost, AC, if the cost function is: C= 3+9q - 49? +g³ 20.00- 19.00- 18.00- 17.00- 16.00 15.00- 14.00- w 13.00- Marginal cost is: MC =O 12.00- 11.00- 9 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00- Quantity Units per day If you are viewing this on a test or quiz, you must click the graph to enable the drawing tools. Cost per unit, $
The Mini-Case "Economies of Scale at Google describes economies of scale for Google Cloud Storage. The cost function for this service is well-approximated by K C(q)-F+cq where C is total cost, F is fixed cost, c is a constant and q is output. What is marginal cost for this cost function? What are the average fixed cost, average variable cost, and average cost? Over what range of output does Google have economies of scale? The marginal cost function (MC) is The average fixed cost function (AFC) is AFC- The average variable cost function (AVC) is AVC- MC-C The average cost function (AC) is AC- (Property format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg, a fraction can be created with the character) Time Remaining: 02.09.09
The Trouser Company has fixed costs of 2,000 per week. In addition, we have some information about its marginal costs (MC) and total variable costs (TVC) Output 0 30 60 90 100 120 150 MC 140 59 32 59 80 140 275 TVC 0 2850 4080 5310 6000 8160 14,250 For each of the output levels in the table, calculate the Trouser Company’ average variable costs (AVC) and average (total) cost (AC)
Graph the Average Total Costs, Average Variable Costs, and Marginal Costs on the same graph.
10:29 A bartleby.com ce ago A company manufactures small refrigerators. The total cost to manufacture 141 refrigerators is $9135. The total costs to manufacture 172 refrigerators is $10995. Assume that total cost, C, is linearly related to the number of refrigerators, x, the company manufactures and includes a fixed cost and a cost per refrigerator. A) Write the cost function, C(x) in terms of x, the number of refrigerators manufactured. Preview B) The total cost to manufacture 106 refrigerators is $ C) The fixed costs are $ D) The cost to produce each additional refrigerator is $
Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of pizzas) (Dollars) (Dollars) 300 1 350 50 2 390 90 3 420 120 4 450 150 490 190 6 540 240 The pizzeria's fixed cost is s
Need help figuring this out step by step attached is a formula sheet that you can use to follow
What is the average total cost of producing 300 LCD screens?
am. 82.
Refer to the information provided in Table 8.2 below to answer the question(s) that follow. Show your computation. Table 8.2 Number of Earrings TVC MC AVC TFC TC AFC ATC 100 1 50 2 95 3 46.67 4 300 270 1) If Sherry produces zero earrings, her total fixed costs are 2) If Sherry produces one pair of earrings, her total variable costs are 3) If Sherry produces two pairs of earrings, her marginal cost is