Sebastian Physician's demand function is p = 1,500 - 0.1q, where q is the number of patients under her care who pay p (in RM) annually for receiving treatment in her clinic. Her total cost function for q patients is TC(q) = 380,000 + 70q + 0.04q^2 .

a. State the total revenue (TR) function. (Hint: TR=pq) (2 marks)

b. Derive the total profit () function. (Hint: = TR-TC) (2 marks)

c. How many private patients should she accept to maximize her profit? (4 marks)

d. At profit maximizing level, how much would Sebastian earns? (2 marks)

e. How much Sebastian needs to charge in order to maximize her profit? (2 marks)

f. Sebastian is considering whether to participate in a government program that will pay her RM700 for each government patient she takes on.

i. Derive the marginal revenue function. (3 marks)

ii. What is the marginal revenue at maximum profit? (2 marks)

iii. Based on the marginal revenue calculate in f(ii), decide, and explain whether Sebastian should or should not participate in the government program?