a) Average Total Cost ATC
Total Cost / Output = 100000/25 = 4
Applying this formula we get ATC as 4, 3, 2.5, 2.76
b) As output increases, ATC is falling upto output level of 75,000. So it's decreasing cost industry upto Q = 75,000. As Q increases higher than 75,000, ATC starts increasing, so it's increasing cost after this level of output.
c) Market price equals marginal cost (MC) where P = MC = $2.5 and Q = 75,000 (individual firm output).
Number of firms = 75,000,000 / 75,000 = 1000
d) If market quantity demanded is 75,000, this is equal to an individual firm's output. So there will be only a single seller (monopoly).
e) The higher the market demand, the higher the number of firms, indicating the level of competition is getting more competitive. So, higher market demand compared to firm's output indicates the market is perfectly competitive (part c)
Assume that the most efficient production technology available for making vitamin pills has the cost structure...
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. a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. MC ATC $ $ Output 50,000 100,000 150,000 200,000 TC 150,000 200,000 237,500 325,500...
Assume that the most efficient production technology available for
making vitamin pills as the cost structure giving him the following
table. Note that output is measured as the number of bottles of
vitamins produces per day and that costs include a normal profit
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the followin table. Note that output is measured as the number of bottles of vitamins produced per day and...
Check my work 4 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. a. What is ATC per unit for each level of output listed in the table? 10 points Instructions: Round your answers to 2 decimal places. Output TC МС АТC еВook 50,200 155,000 0.45...
Check my w 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 put into use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Instructions: In part around your answers to 2 decimal places. In parts cand d, enter your answers as whole numbers. a. What is ATC for each level of...
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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. a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. MC ATC $ $ Output...
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 put into use. The TC per bottle for production up to 100,000 bottles per day Is given in the following table a, What is ATC for cach lovel of output listed in the table? Instructions: Round your answers to two decimal places. Output 25.000 ATC S95.000 115.000 50.000 75.000 120 000 100,000...
a. What is ATC for each level of output listed in the table? Output $TC $ATC 75,000 $100,000 $ [ Select ] ["1.33", "1", "1.20", "0.67"] 100,000 $125,000 $ [ Select ] ["1.10", "1", "1.25", "0.87"] 125,000 $140,000 $1.12 150,000 $150,000 $1.00 b. Is this a decreasing-cost industry? [ Select ] ["no", "need more information", "yes"] c. Suppose that the price of a bottle of vitamins is $1.33 and that...
a. What is ATC for each level of output listed in the table? Output $TC $ATC 75,000 $100,000 $ [ Select ] ["1.20", "1.33", "0.67", "1"] 100,000 $125,000 $ [ Select ] ["1", "1.10", "0.87", "1.25"] 125,000 $140,000 $1.12 150,000 $150,000 $1.00 b. Is this a decreasing-cost industry? [ Select ] ["no", "need more information", "yes"] c. Suppose that the price of a bottle of vitamins is $1.33 and that at that price the total quantity...
1. Assumption for a Perfectly competitive firm include a
Homogeneous product a several sellers and [ Select ]
["unique", "Many Many", "few few", "3-4"] buyers easy
entry and exit.
2. Perfectly competitive firms are known as Price Takers because
they [ Select ] ["have pricing power", "have minimal
pricing power", "have very little pricing power", "have no pricing
power"] which means they[ Select ] ["should
advertise less", "have no incentive", "ought to advertise", "must
advertise more"] to advertise
3. The...
1. (20p) Suppose that, in a perfectly competitive industry, the technology for making the product (by any single firm) has the total cost function c(q) = 200 + 4q+ Barriers to entry and exit the market are low and an unlimited number of firms could enter this industry, all with the same total cost function. (a) Compute the long-run equilibrium price in this industry, as well as the amount of output each firm would produce at this price. Explain the...