MHA 710 Exam 3 Questions and Verified
Detailed Answers | Latest Update
Marginal revenue is the: - ✔✔change in total revenue associated with the sale
of one more unit of output.
You will sell 2,000 units at a price of $150 and 1,800 units at a price of $155.
What is the marginal revenue? - ✔✔105
Your average and marginal cost is $300. Your price is $500, and you serve 1,000
customers. You forecast sales of 1,200 at a price of $450. Which of the following
statements is true? - ✔✔None of the above.
In the following table, at what price are profits maximized? - ✔✔At a price of
$225.
In the following table, what is the marginal cost of producing 2,000 visits? -
✔✔$43.75
In the following table, what is the marginal revenue of producing 2,000 visits? -
✔✔25
The price elasticity of demand for physicians' services is -0.20. Your group
controls 10 percent of the market. What price elasticity does your firm face? -
✔✔-2.00
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, Your firm spent $200,000,000 bringing a new drug to market. Each pill costs $2
to manufacture. The price elasticity of demand is -3.00. How much should you
charge? - ✔✔3
Your marginal cost is $10, and you face an elasticity of -5.00. Which price should
you choose to maximize profits? - ✔✔12.50
You currently serve 3,000 non-HMO patients and 1,000 HMO members. Your
fixed costs are $50,000, and your marginal cost is $50. If the price elasticity of
demand for non-HMO patients is -3 and the price elasticity of demand for HMO
members -6, which of the following statements is true about the prices you
should charge? - ✔✔You would maximize profits by charging non-HMO patients
$75 and HMO members $60.
Which of the following attributes of healthcare products makes price
discrimination easy? - ✔✔a. Most healthcare must be delivered directly to the
customer.
b. Resale is very difficult, in most healthcare markets.
c. Insurance coverage helps identify the least price-sensitive customers.
d. All of the above.******
A system anticipates that spending $300,000 on an advertising campaign will
increase bed days by 650. The marketing department anticipates that each
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©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
Detailed Answers | Latest Update
Marginal revenue is the: - ✔✔change in total revenue associated with the sale
of one more unit of output.
You will sell 2,000 units at a price of $150 and 1,800 units at a price of $155.
What is the marginal revenue? - ✔✔105
Your average and marginal cost is $300. Your price is $500, and you serve 1,000
customers. You forecast sales of 1,200 at a price of $450. Which of the following
statements is true? - ✔✔None of the above.
In the following table, at what price are profits maximized? - ✔✔At a price of
$225.
In the following table, what is the marginal cost of producing 2,000 visits? -
✔✔$43.75
In the following table, what is the marginal revenue of producing 2,000 visits? -
✔✔25
The price elasticity of demand for physicians' services is -0.20. Your group
controls 10 percent of the market. What price elasticity does your firm face? -
✔✔-2.00
1|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, Your firm spent $200,000,000 bringing a new drug to market. Each pill costs $2
to manufacture. The price elasticity of demand is -3.00. How much should you
charge? - ✔✔3
Your marginal cost is $10, and you face an elasticity of -5.00. Which price should
you choose to maximize profits? - ✔✔12.50
You currently serve 3,000 non-HMO patients and 1,000 HMO members. Your
fixed costs are $50,000, and your marginal cost is $50. If the price elasticity of
demand for non-HMO patients is -3 and the price elasticity of demand for HMO
members -6, which of the following statements is true about the prices you
should charge? - ✔✔You would maximize profits by charging non-HMO patients
$75 and HMO members $60.
Which of the following attributes of healthcare products makes price
discrimination easy? - ✔✔a. Most healthcare must be delivered directly to the
customer.
b. Resale is very difficult, in most healthcare markets.
c. Insurance coverage helps identify the least price-sensitive customers.
d. All of the above.******
A system anticipates that spending $300,000 on an advertising campaign will
increase bed days by 650. The marketing department anticipates that each
2|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
