Your marketing department estimates that Medicare urology visits equal 5 − (1.0 × C) + (−6.5 × T_O) + (5 × T_R) + (0.01 × ϒ). Here, C denotes the Medicare copayment (now $20), T_O is waiting time in your clinic (now 30 minutes), T_R is waiting time in your competitor’s clinic (now 40 minutes), and ϒ is per capita income (now $40,000).

a. How many visits do you anticipate?

b. Medicare’s allowed fee is $120. What revenue do you anticipate?

c. What might change your forecast of visits and revenue?