2.2 Suppose a hospital has 500 beds. It faces a demand curve x = 1,200-2p, where p is the price o...

2.2 Suppose a hospital has 500 beds. It faces a demand curve x = 1,200-2p, where p is the price of a bed day and x is the number of patient days of care demanded. The fixed cost of adding a new bed is $150, and the total housekeeping cost is given by C (B/3.5)2 where B is the total number of beds. a. Suppose the hospital's market price is fixed at $250/bed day. What is the net marginal revenue to this hospital from an increase of one additional bed? b. With p fixed at 250, graph the net marginal revenue curve, with the number of beds on the x-axis and dollars on the y-axis. Explain its shape c. Suppose the hospital is restricted from increasing its capacity for now, but it can set the price for each bed day. What is the optimal price level for the hospital

We were unable to transcribe this image