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 25,100 101,000 $ 0.51 50,100 151,000 1.01 75,100 188,500 2.51 100, 100 276,500 3.01 Is this a decreasing-cost industry? (Click to solect) Suppose that the market price for a bottle of vitamins is $2.51 and that at that price the total market quantity demanded is 82,610,000 bottles. How many firms will there be in this industry? | firm(s). Suppose that, instead, the market quantity demanded at a price of $2.51 is only 75,100. 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 25,100 101,000 $ 0.51 50,100 151,000 1.01 75,100 188,500 2.51 100, 100 276,500 3.01 Is this a decreasing-cost industry? (Click to solect) Suppose that the market price for a bottle of vitamins is $2.51 and that at that price the total market quantity demanded is 82,610,000 bottles. How many firms will there be in this industry? | firm(s). Suppose that, instead, the market quantity demanded at a price of $2.51 is only 75,100. 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)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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