Reference no: EM13214495
a. What is ATC per unit for each level of output listed in the table? Output 25,000 50,000 75,000 100,000 TC 100,000 150,000 187,500 275, 500 MC $ .50 1.00 2.50 3.00
b. Is this a decreasing-cost industry? Yes or no?
c.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?
d.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?
e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure?