Does physiotherapy visits yield 10 additional healthy days

Reference no: EM13175703

Mrs Seigal has two alternative activities to help relieve her backache. In the first, she can visit a physiotherapist. The total time for physioterapist visit, including travel and waiting, is two hours. Mrs Siegal earns a eage of $20 an hour. Physiotherapists charge $50 per visit, and Mrs Seigal does not have any health insurance. As a second alternative, Mrs Siegal can take pain killers. Each pill costs 50 cents, and Mrs Seigal needs to take 30 pills per month. The two treatments are not equally effective. The physiotherapy visits yield 10 additional healthy days per month, while the pills yield 6 healthy days.

a. If Mrs Siegal can only choose one alternative, and if she wants to maximize the most healthy days per dollar that she gets, which option will she choose?

b. If the price of a pill ncreases to $3, which option will she choose?

Reference no: EM13175703

Questions Cloud

Calculate net exports : a. Calculate net exports. b. Use the expenditure approach to calculate GDP. c. Use the income approach to calculate GDP. d. Calculate net domestic product (at factor cost). e. Calculate net domestic income (at market price..

Determine the real gdp for a year : If the nominal GDP is $559 billion in the base year, and it rises to 577 in year 1, and 605 in year 2, what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2?

How the announcement to affect the value of the bond : Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%. How would you expect this announcement to affect the value of your bond?

What are the macroeconomic policies : If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you expect these policy changes to impact the economy?

Does physiotherapy visits yield 10 additional healthy days : a. If Mrs Siegal can only choose one alternative, and if she wants to maximize the most healthy days per dollar that she gets, which option will she choose? b. If the price of a pill ncreases to $3, which option will she choose?

How to examine maintenance cost : The maintenance cost for both models is $100 per hour. The variable operating cost is $346 per hour for Model A and $290 per hour for Model B. Due to obsolete parts, there is a sunk cost of $2700 for model A and $1900 for Model B.

What is the selling price for the product : A manufacturing company leases a machine for $31,812 per year. Each unit produced costs $36 in labor and $72 in materials. To break even, 21,000 units must be sold. What is the selling price for the product

Explain national bureau of economic research : According to the National Bureau of Economic Research, a poor family is the one whose income falls below one-half of the median family income. Using this definition of poverty, answer the following questions. a) How, if at all, would the proportio..

How to improve one-time additive : A producer of synthetic motor oil for automobiles and light trucks has made the following statement: "One quart of Dynolube added to your next oil change will increase fuel mileage by one percent.

User Account

All Pages