If the price per visit is given to be 25 at what level of

Question

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

Quantity of Visits                                           Total Cost per Week

0                                                                                                                                                    $10

1                                                                                                                                                      15

2                                                                                                                                                      25

3                                                                                                                                                      45

4                                                                                                                                                      75

5                                                                                                                                                    115

6                                                                                                                                                    165

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)?