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Use the data from the table below to answer the questions that follow regarding the supply behavior of a theoretical, profit-maximizing, price-taking home health services
Use the data from the table below to answer the questions that follow regarding the supply behavior of a theoretical, profit-maximizing, price-taking home health services provider: Quantity of home health visits Total Cost (TC) 0 10 1 15 2 25 3 45 4 70 5 100 6 155 7 210 8 295 9 360 10 450 A. Assume a market price of $25 per visit. At what level of supply (in terms of visits) will profits be maximized? B. What are the estimates of the marginal revenue and marginal cost of production at the profit-maximizing level of supply identified in question 1(A)? C. If the market price increases to $45 per visit, at what level of output (in terms of visits) will profits be maximized? D. Now, assume that this provider is NOT a profit-maximizing producer of home health visits, but is rather an output-maximizing producer, such as the case with many not-for-profit organizations. Under each pricing scenario described previously ($25 vs. $45), what would be the predicted supply of such an organization? E. Based on the results from question 1(D), how do the supply choices of each type of organization (profit-maximizing vs. output-maximizing) compare
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