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The Quik Service Walk In Clinic always has three M.D. and 8 R.N.s working at its 24 hour clinic, which serves consumers with minor emergencies and ailments. The clinic has hired an efficiency expert to examine its operations and make suggestions for reducing costs.
For some of the medical procedures done at the clinic, experienced nurses can perform the medical tasks approximately as well as the physicians can, as long as the nurses are supervised by M.D.s. Since M.D.s are more highly trained than nurses, the marginal product of M.D.s is higher than the marginal product of R.N.s.
The manager of the clinic is confused by the efficiency consultants report because the report recommendsusing more R.N.s and fewer M.D.s to lower the cost of providing a given level of medical services. Under what circumstances would it be economically efficient for this clinic to use more R.N.s and fewer M.D.s (given (MPmd>MPrn)? Explain?
If a production function is given through the equation Q=12X+ 10x2- x3 where X= input and Q=output then provide the computation for average product.
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A company uses two inputs to produce a final good. If the price of one of the inputs raise and price of the other remains the same
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A portfolio manager is being evaluated based on the time-weighted average rate of return. If the manager had achieved annual returns for the past three years of 2.5 percent, 14.5 percent and 9 percent on one initial investment of $500,000,
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Say there is a natural disaster which wipes out all of tomato plantation of one country. so there is a drastic increase in the price say from $6 to $15 a kilo
A 3*9 FRA has an agreement rate of 4.75 percent. You believe 6M libor in 3M will be 5.125 percent. You decide to take a speculative position in a FRA with a $1,000,000 notional value
If a manager that takes over a furniture factory and realizes immediately that it was throwing away at least $100,000 a year worth of wood scrap
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