A doctor in a rural area faces the following demand schedule: Price per Number of Office Office

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

Question Posted: