Your hospital has a demand function given by P = 404  2Q where P is the price of hospital care and Q is the quantity of hospital care. The marginal revenue (MR) function is given by MR = 404 – 4Q. The total cost function (TC) is given by TC = 300 + 4Q + 8Q^{2} and the marginal cost (MC) is given by MC = 4 + 16Q.
P 
Q 
TR 
TC 
AC 
MC 
Profit 
404 
0 
0 
300 
300 

394 
5 
1970 
520 
104 
44 
1450 
10 
C 

374 
A 
D 

364 
20 
B 
3580 
179 
284 

354 
25 
8850 
5400 
216 
E 

344 
30 
10320 
7620 
254 
A.
P = 4042Q  (1)
Multiply above equation by Q
P*Q = 404Q  2Q^2
Or
TR = 404Q  2Q^2
B.
P  Q  TR  TC  AC  MC  Profit 
404  0  0  300  300  
394  5  1970  520  104  44  1450 
384  10  3840  1140  114  124  2700 
374  15  5610  2160  144  204  3450 
364  20  7280  3580  179  284  3700 
354  25  8850  5400  216  364  3450 
344  30  10320  7620  254  444  2700 
C.
Revenue is maximized, when output = 30
At this level, TR = 10320
D.
Profit is maximized, when output = 20
At this level, profit = 3700 that is maximum among all the output level.
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