A doctor in a rural area faces the following demand schedule: Price per Number of Office Office
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A doctor in a rural area faces the following demand schedule:
Price per Number of Office
Office Visit Visits per Day
$200 ............... 2
$175 ................ 3
$150 ................ 5
$125 ............... 8
$100 ............... 12
$ 75 ................ 18
$ 50 ................ 23
$ 25 ................ 25
The doctor’s marginal cost of seeing patients is a constant $50 per patient.
a. If the doctor must charge all patients the same price, what price will she charge, and how many patients will she see each day?
b. If the doctor can perfectly price discriminate, how many patients will she see each day?
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Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
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