11.2 The owners of the clinic in Exercise 11.1 invested $400,000. What is the return on investment? Is it adequate?

11.4 The owners of the laboratory in Exercise 11.3 invested $6 million. What is the return on investment?

11.9 The pricequantity relationship has been estimated for a new prostate cancer blood test: Q = 4,000 (20 P ). Use a spreadsheet to calculate the quantity demanded and total spending for prices ranging from $200 to $0, using $50 increments. For each $50 drop in price, calculate the change in revenue, the change in volume, and the additional revenue per unit. (Call the additional revenue per unit marginal revenue.)

11.11 A clinics average and marginal cost per case is $400. It charges $600 per case and serves 1,000 customers. Its marketing team predicts that it will expand its sales to 1,250 customers if it cuts its price to $550. How do profits change if it cuts prices? What is the firms marginal revenue? Why is marginal revenue not equal to $550?

11.12 A clinics average and marginal cost per case is $400. It charges $600 per case and serves 1,000 customers. Its marketing team predicts that it will expand its sales to 1,250 if it signs a contract for a price of $550 with a local health maintenance organization. How do profits change if it signs the contract? What is the firms marginal revenue? Why is its marginal revenue different from the marginal revenue in the previous exercise?

11.13 Why would a for-profit organization that incurs losses choose to operate?

11.14 Why would a for-profit organization that is earning profits choose to exit a line of business?