A clinic’s average and marginal cost per case is $400

Accounting Feb 16, 2021

A clinic’s average and marginal cost per case is $400. It charges $600 per case and serves 1,000 customers. Its marketing team predicts that it will expand its sales to 1,250 customers if it cuts its prices to $550. How do profits change if it cuts prices? What is the firm’s marginal revenue? Why is marginal revenue not equal to $550?

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