A Bottle of Vintage Red Wine Has Lost Its Label

question 21

Short Answer

A bottle of vintage red wine has lost its label. The concentration of tritium ( ) in the wine is 0.34 times that found in freshly bottled wines. If the half-life of tritium is 12.3 years, estimate the time elapsed since the wine was bottled.

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Definitions:

Decreasing-Cost Industry

An industry in which the costs of production decrease as the industry expands, often due to efficiencies gained from economies of scale.

Technologically Progressive Industry

An industry characterized by rapid and continuous technological innovation, leading to dynamic growth and evolution of its products and services.

Long-Run Supply Curve

A graphical representation showing the quantities of a good or service that a firm is willing and able to supply at different prices over a period where all inputs can be varied.

Constant-Cost Industry

Constant-Cost Industry refers to an industry in which the input prices do not change as industry output changes, leading to a flat supply curve.