Answered: P=600-0.7Q, where P is the price and Q…

P=600-0.7Q, where P is the price and Q is the quantity demanded. The market is regulated so that each dentist must charge each service provided at the marginal cost, which is $100.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Antitrust And Regulation

Section: Chapter Questions

Problem 10SQP

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Concept explainers

Protective Tariffs

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges which a country charged on imported goods to protect its domestic market. It also protects countries Industrialists in their Production. So, that their markets remain intact and do not get dumped by outside supply.

Question

100%

Consider a dental service market. The demand for the service is given by P=600-0.7Q, where P is the price and Q is the quantity demanded. The market is regulated so that each dentist must charge each service provided at the marginal cost, which is $100.

If each patient has an insurance that pays 60% of the service received, then how many services will be provided in total? (two dec places)

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