new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available ranybody to copy and use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Output 25,000 50,000 75,000 100,000 TC $85,000.00 105,000.00 110,000.00 115,000.00 ATC structions: In part a, round your answers to 2 decimal places. In parts c and d enter your answers as a whole number What is ATC for each level of output listed in the table? Enter your answers in the table above. Suppose that for each 25,000-bottle-per-day Increase in production above 100,000 bottles per day. TC increases by $5,000 (so at, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total sts of $125,000). Are there economies of scale at all levels of output? [Click to select) Suppose that the price of a bottle of vitamins is $2.03. At that price, the total quantity demanded by consumers is 75,000,000 ttles. How many firms will be in this industry? firm(s) Suppose that, Instead, the market quantity demanded at a price of $2.03 is only 75,000. How many firms will 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)
new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available ranybody to copy and use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Output 25,000 50,000 75,000 100,000 TC $85,000.00 105,000.00 110,000.00 115,000.00 ATC structions: In part a, round your answers to 2 decimal places. In parts c and d enter your answers as a whole number What is ATC for each level of output listed in the table? Enter your answers in the table above. Suppose that for each 25,000-bottle-per-day Increase in production above 100,000 bottles per day. TC increases by $5,000 (so at, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total sts of $125,000). Are there economies of scale at all levels of output? [Click to select) Suppose that the price of a bottle of vitamins is $2.03. At that price, the total quantity demanded by consumers is 75,000,000 ttles. How many firms will be in this industry? firm(s) Suppose that, Instead, the market quantity demanded at a price of $2.03 is only 75,000. How many firms will 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)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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 use. The TC per bottle for production up to 100,000 bottles per day is given in the following table.
Output
25,000
50,000
75,000
100,000
TC
$85,000.00
105,000.00
110,000.00
115,000.00
ATC
Instructions: In part a, round your answers to 2 decimal places. In parts cand d enter your answers as a whole number.
a. What is ATC for each level of output listed in the table? Enter your answers in the table above.
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). Are there economies of scale at all levels of output?
(Click to select)
c. Suppose that the price of a bottle of vitamins is $2.03. At that price, the total quantity demanded by consumers is 75,000,000
bottles. How many firms will 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 will 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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