The owner of an optometry practice, in a city with more than a hundred other such practices, has the following demand and cost schedules for eye exams:

a. Fill in the columns for total revenue, marginal revenue, and marginal cost. (Remember to put MR and MC between output levels.)
b. Briefly explain why an optometry practice (like this one) might face a downward-sloping demand curve, even if it is one out of more than a hundred.
c. Use the data you filled in for the marginal revenue and marginal cost columns to find the profit maximizing price and the profit-maximizing number of eye exams per week for thispractice.

Transcribed Image Text:

Price EyTotal per Exams Cost Revenue Eye per perpe Marginal Marginal Exam Week Week Week Revenue Cost $100 100 $10,500 80 140 $10,800 s 60 200 $11,300 40 310 $12,290 20 550 $14,762