4. The following is a cost function for clinic visits in a small inner city clin

Question

4. The following is a cost function for clinic visits in a small inner city clinic: (Jacobs 142-143)

a. Determine the marginal cost for each level of output.

b. If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied?

c. If the price per visit increases to $45, what will be the quantity supplied (assuming maximizing profits)? (Jacobs 143)

Quanity of visits / total cost per week
0 10
1 15
2 25
3 45
4 75
5 115
6 165

Explanation / Answer

MC 0 10 1 5 2 10 3 20 4 30 5 40 6 50 Max profit when MR=MC so at 3.5 if 45 then 5.5

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.