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12.9 The table shows case-mix-adjusted price and volume data for Dunes Hospital. Calculate its marginal cost, marginal revenue, and profits at each level of output.
12.9 The table shows case-mix-adjusted price and volume data for Dunes Hospital. Calculate its marginal cost, marginal revenue, and profits at each level of output. What price should it choose?
Admissions | 6,552 | 9,048 | 9,672 | 9,948 | 10,296 |
Revenue | $52,416,000 | $70,574,400 | $73,507,200 | $73,881,600 | $74,131,200 |
Cost | $42,588,000 | $59,264,400 | $63,835,200 | $66,393,600 | $68,983,200 |
Price | $8,000 | $7,800 | $7,600 | $7,400 | $7,200 |
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