Question

economic of health and medical care In a MS Word document, define total revenue (TR), marginal...

economic of health and medical care

In a MS Word document, define total revenue (TR), marginal revenue (MR), and the profit-maximizing rule for a single investor-owned firm. Then calculate MR, MC, and ATC for Table 3.1. Next, give the profit-maximizing level of output (Q).

Now, assume the firm is a tax-exempt agency. One possibility is that tax-exempt agencies maximize output. Define the output-maximization rule and then give the output-maximizing level of output (Q) given Table 3.1. What happens to the supply curve for an output-maximizing firm if it increases the quality of their visits?

Table 3.1
Quantity of Visits (Q) Total Revenue (TR) Marginal Revenue (MR) Total Costs(TC) Marginal Cost (MC) Average Total Cost (ATC)

0

0

---

100

-----

-----

1

200

200

2

400

350

3

600

550

4

800

800

5

1000

1100

Homework Answers

Answer #1

Total Revenue is total money receipts of a producer corresponding to a given level of output. It is equal to the product of price and quantity.

Marginal Revenue is the change in total revenue on account of the sale of one more unit of output.

Average Revenue is the per unit revenue received from the sale of a commodity. It is the same as price of the commodity.

Average total cost = Total cost / Quantity

Profit is maximised where marginal revenue of firm is equal to the marginal cost of firm. Profit maximising quantity is 3 units because MR = MC = 200.

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