Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 8

The owner of an optometry practice,in a city with more than a hundred other such practices,has the following demand and cost schedules for eye exams:
a. Fill in the columns for total revenue,marginal revenue,and marginal cost. (Remember to put MR and MC between output levels.)b. Briefly explain why an optometry practice (like this one)might face a downward-sloping demand curve,even if it is one out of more than a hundred. (Hint: What might make this market monopolistically competitive rather than perfectly competitive?)c. Use the data you filled in for the marginal revenue and marginal cost columns to find the profitmaximizing price and the profit-maximizing number of eye exams per week for this practice.