The following is a cost function for clinic visits in a small inner city clinic:
Quantity of visits Total Cost per Week
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)?
The solution demonstrates cost benefit analysis for the given data.