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)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
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)
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)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Savings
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education