A clinic has incremental costs per case of $10 and overhead costs of 100,000. It faces a price…


A clinic has incremental costs per plight of $10 and over costs of 100,000. It faces a price elasticity of ask-for of −2.

a. What is the clinic’s profit-maximizing price?

b. How would the profit-maximizing price change if over costs doubled?

c. With increase compressiveness, would serving Medicaid customers for a fee of 16 mould opinion?

d. How would the profit-maximizing price change if Medicaid eminent its fee to18?