How many firms do you expect there to be in the industry

Assignment Help Econometrics
Reference no: EM13214504

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. Output TC MC ATC 25,000 $100,000 $0.50 ? 50,000 150,000 1.00 ? 75,000 187,500 2.50 ? 100,000 275,000 3.00 ?

a. What is ATC per unit for each level of output listed in the table?

b. Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles. How many firms will there be in this industry?

c. Suppose that, instead, the market quantity demanded at a price of $2.50 is only 75,000. How many firms do you expect there to be in this industry?

Reference no: EM13214504

Questions Cloud

What is the payback period of new investment : What would be the cost of new common stock equity for Tangshan Mining if the firm just paid a dividend of $4.25, the stock price is $55.00 and what is the payback period of new investment
State how many grams of 2so4 should be present to prevent : How many grams of (NH4)2SO4 should be present to prevent precipitation of Mg(OH)2 (s). The Ksp of Mg(OH)2 is 1.8x10^-11.
Describe the details of the fictitious business : Assume that you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 un..
Explain what is the solubility of mns : What is the solubility of MnS, in grams per liter, in a buffer solution that is 0.115M HC2H3O2
How many firms do you expect there to be in the industry : 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 pro..
Explain equation for the conversion of the fatty acid : What is the balanced equation for the conversion of the fatty acid H3C-(CH2)20-COOH to acetyl CoA and other products?
What would be the estimated price of bond today : A zero coupon Treasury bond is scheduled to pay $1000 in 25 years. If the current Treasury yield rate on this maturity of bonds is 4.5% YTM (APR), what would be the estimated price of this bond today?
Explain columetric flask and the colume made up : 3.953g of egg shell was reacteed with 50ml of 0.1 mol/l hcl and shel contains ca2co3 after all the sheell reacted resultign solution was placed in a columetric flask and th colume made up to be 100ml.
How many labor hours and machine hours should firm employ : Davy Metal Company produces brass fittings. Davy's engineers estimate the production function represented below as relevant for their long-run capital-labor decisions. Q = 500L^0.6K^0.8 where Q = annual output measured in pounds.

Reviews

Write a Review

Econometrics Questions & Answers

  How much should to deposit on each birthday

They want to deposit the sum in an account that earns 8% compounded continuously. Beginning when she turns 6 and ending when she turns 21, how much should they deposit on each birthday if she is to get $28,000 on each birthday from her 21st to her..

  Why demand curve is in fact of constant elasticity variety

Consider A monopolist that faces the constant elasticity demand curve y(p) = p^e where e 0. ASlso assume that the monopolist pays a quantity tax of t > 0. a) verify that the demand curve is in fact of the constant elasticity variety

  Complete the columns pertaining to atc and avc

Demonstrate in BOTH diagrams (graphically and/or geometrically) the Total Coast, Total Variable Cost, Total Revenue , Total Fixed Cost and Total Profit, at the point where quantity produced is at the optima level (Profit-maximizing level).

  How long will it take them to have a total of account

Mario and Claudia deposit $100 into their joint account at the end of each month. If their account earns 7 percent/year/year/month (7 percent per year compounded quarterly), how long will it take them to have a total of $15,000 in their account

  Determine is the company minimizing cost

Suppose you are the production manager for Widgets, Inc. Your job is to produce a fixed amount of output at the lowest cost possible. When you take over the position, you find that the price paid for a unit of labor is $20 (W = $20)

  What is the elasticity of demand over the range

Price Quantity demanded $200 1000 150 1400 100 1800 a. If price falls from $200 to $150, what is the elasticity of demand over this range b. As output increases from 1,000 to 1,400 what is marginal revenue

  Can they produce any linear combinations

two people live alone in isolated regions, have the same resources, grow potaotes and chickens, if one devotes resources to growing potatoes they raise 200 lbs a year. if they grow chickens they raise 50 a year. if they apportions some resourcs to ..

  What is the full employment level of nominal gdp

Suppose the LRAS is positioned at a real GDP of $12 trillion in base year dollars, and the long run equilibrium price level (in index number form) is 115. The corresponding full employment level of nominal GDP must be how much trillion dollars.

  Which investment is more attractive at an oil price

An oil and gas investor is considering the acquisition of two fields. Both fields have the same production profiles:production starts in 2013 and averages 250 barrels of oil per day (bopd) during that year.

  How many units will the consumer buy in total

qd=1000-5p mr=200-0.4q marginal cost is constant at $20. The firm is considering quantity discount. The firs 400 units can be purchased at $120 and further units at $80. How many units will the consumer buy in total

  Why is it even a less fair bet when the house takes a cut

A "mathematically fair bet" is one in which the amount won will on average equal the amount bet, for example, when a gambler bets, say, "$100 for a 10 percent chance to win $1000 ($100 = .10 x $1000). Assuming diminishing marginal utility of dolla..

  Calculate the optimal amount of pretzels

Calculate the optimal amount of pretzels and soft drinks that minimizes this firm's costs and how many frames do you provide each month?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd