D. Briefly interpret the relationship between AR and MR based on your solution to thetable. 8. Hospital Profit MaximizationA. Below are two figures representing profit-maximization in two different hospitals.Please label the marginal cost, marginal revenue, average cost and averagerevenue for each of the two hospitals.Hospital (a)Hospital (b)Output (Q)Output(Q)B. According to the model shown in the graphs, can you identify which of the hospitalsis a hospital in a competitive market (price-taker), and which hospital appears to bemonopolistic? Please explain.C. Fill in the average revenue and marginal revenue in the table.Output (Q) Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR)4$32056$4207$455Costs/RevenaCosts Revens

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8. Hospital Profit Maximization A. Below are two figures representing profit-maximization in two different hospitals. Please label the marginal cost, marginal revenue, average cost and average revenue for each of the two hospitals. Hospital (a) Hospital (b) Output (0) Output (0) B. According to the model shown in the graphs, can you identify which of the hospitals is a hospital in a competitive market (price-taker), and which hospital appears to be monopolistic? Please explain. C. Fill in the average revenue and marginal revenue in the table. Output (Q) Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR) 4 $320 5 $375 6 $420 7 $455 Cont Reven Cont Reven

8. Hospital Profit Maximization A. Below are two figures representing profit-maximization in two different hospitals. Please label the marginal cost, marginal revenue, average cost and average revenue for each of the two hospitals. Hospital (a) Hospital (b) Output (0) Output (0) B. According to the model shown in the graphs, can you identify which of the hospitals is a hospital in a competitive market (price-taker), and which hospital appears to be monopolistic? Please explain. C. Fill in the average revenue and marginal revenue in the table. Output (Q) Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR) 4 $320 5 $375 6 $420 7 $455 Cont Reven Cont Reven

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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