In the following table, what is the marginal revenue of producing 2,000
visits? - (correct answer) 25
The price elasticity of demand for physicians' services is -0.20. Your
group controls 10 percent of the market. What price elasticity does
your firm face? - (correct answer) -2.00
Your firm spent $200,000,000 bringing a new drug to market. Each pill
costs $2 to manufacture. The price elasticity of demand is -3.00. How
much should you charge? - (correct answer) 3
Your marginal cost is $10, and you face an elasticity of -5.00. Which
price should you choose to maximize profits? - (correct answer)
12.50
Marginal revenue is the: - (correct answer) change in total revenue
associated with the sale of one more unit of output.
You will sell 2,000 units at a price of $150 and 1,800 units at a price of
$155. What is the marginal revenue? - (correct answer) 105
, Your average and marginal cost is $300. Your price is $500, and you
serve 1,000 customers. You forecast sales of 1,200 at a price of $450.
Which of the following statements is true? - (correct answer) None
of the above.
In the following table, at what price are profits maximized? - (correct
answer) At a price of $225.
In the following table, what is the marginal cost of producing 2,000
visits? - (correct answer) $43.75
You currently serve 3,000 non-HMO patients and 1,000 HMO members.
Your fixed costs are $50,000, and your marginal cost is $50. If the price
elasticity of demand for non-HMO patients is -3 and the price elasticity
of demand for HMO members -6, which of the following statements is
true about the prices you should charge? - (correct answer) You
would maximize profits by charging non-HMO patients $75 and HMO
members $60.
Which of the following attributes of healthcare products makes price
discrimination easy? - (correct answer) a. Most healthcare must be
delivered directly to the customer.
b. Resale is very difficult, in most healthcare markets.
c. Insurance coverage helps identify the least price-sensitive customers.
d. All of the above.******
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