Question: 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
Q1. Determine the marginal cost for each level of output.
Q2. 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?
Q3. If the price per visit increases to $45, what will be the quantity supplied (assuming maximizing profits)?