HCA 660 NU Supply and Demand Equilibrium Profit and Inflation Questions

Question 1 options:The point on a graph of supply and demand curves where the supply curve and the demand curve meet is called the 

price

Question 2

Which of the following are ways organizations can increase profits according to the textbook (choose all that apply):

Question 2 options:

Expanding output as long as marginal revenue exceeds marginal cost

Reducing costs through improved clinical management (becoming more efficient in delivering healthcare)

Reducing output as long as less output reduces costs more than it reduces revenue. 

Expanding output as long as marginal revenue remains the same and marginal costs remain the same.  

Question 3 (3 points)

Match the following: 

Question 3 options:1234

Surplus

1234

Demand Shift

1234

Supply Shift

1234

Shortage

1.

This occurs when a factor other than the price of the product itself (e.g., consumer income) changes.

2.

This change to the supply curve occurs when a factor (e.g., an input price, supply chain issue, regulations) other than the product’s or service’s price changes.

3.

This occurs when the quantity supplied at the prevailing price exceeds the quantity demanded

4.

This occurs when the quantity demanded at the prevailing price exceeds the quantity supplied

Question 4 (3 points)

Assume you are managing an imaging clinic that performs MRI exams.

If the marginal revenue on each MRI is $2500, and the marginal cost for each is $500, what would be the profit or loss on the 52 MRIs performed at your clinic last month?

Question 4 options:

$104,000

$118,000

[$126,000] (loss)

$156,000

Question 5 (3 points)

Which of the following is/are correct? (choose all that are correct): 

Question 5 options:

marginal revenue is found by dividing the total revenue by the quantity sold. 

marginal revenue is found by dividing the change in total revenue by the change in quantity sold

profit is maximized when marginal revenue equals marginal cost (this is the general rule)

marginal cost is found by dividing the change in total cost by the change in quantity sold 

Question 6 (3 points)

The inflation we have been recently experiencing was likely caused by what? (choose all that apply):

Question 6 options:

low wages

An overall decrease in supply due to supply-chain issues and labor shortages. 

An overall increase in demand for certain items that began during the COVID-19 pandemic and increased as well after the closures due to the pandemic.  

High elasticity

Question 7 (6 points)

Two parts (worth 6 points total):

1. From the table below, calculate the marginal revenue, marginal cost, and profit for the price of $1900, $1700, and $1600. 

2. At which prices does the clinic make a profit? Which price maximizes profits?  

Procedures50100200250Price$2000$1900$1700$1600Revenue$100,000$190,000$340,000$400,000Cost$102,500$185,000$320,000$387,500Marginal RevenueN/A   Marginal CostN/A   Profit    Question 7 options:

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Lato (Recommended)

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Question 8 (3 points)

With what you now know about price elasticity of demand – both elastic and inelastic demand – answer the following question: A price discriminating firm will charge the lowest price when the price elasticity of demand is: 

Question 8 options:

Highest

Lowest

Zero

Equal to 1

Question 9 

Because they are non-profit, many hospitals fail to pay executives well. 

Question 9 options:TrueFalse