Calculate the profit-maximizing quantity-price and profit

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Assume the hospital is a monopolist with a demand function given by p = 404−2x, where p is the price of hospital care and x is the quantity of hospital care. Assume that the hospital’s cost function is given by C = 300+4x+8x 2 , where C is total cost.

(a) Compute marginal cost and average cost.

(b) Calculate the hospital’s profit-maximizing quantity, price, revenue, and profit.

Reference no: EM13859124

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