Write the equation for the medical isocost of afc

Reference no: EM13209691

Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day.

a. Write the equation for the medical isocost of AFC.

b. It has been estimated that an additional doctor could increase the daily output of the clinic by 25 patients, while an additional nurse would increase the number of patients served in a day by only 10. What is the marginal rate of substitution between doctors and nurses?

c. Is the mix of doctors and nurses the clinic is presently using optimal? Explain.

d. Suppose the clinic wishes to expand its operation. Would you recommend that the clinic increase the numbers of its nurses and doctors equally? Explain.

e. Now suppose as a result of an increase in the number of foreign doctors immigrating into the country the daily wage of doctors has dropped to $400. Should this change the hiring practices of the AFC? Explain.

Reference no: EM13209691

Questions Cloud

Erik erikson''s adolescense stage-borderline personality : What is the relationship between Erik Erikson's adolescense stage and borderline personality disorder?

Explain why is the original so valuable : Portray this sale in a demand and supply diagram and comment on the elasticity of supply. Comedian George Carlin once mused, "If a painting can be forged well enough to fool some experts, why is the original so valuable

Keynote of buddhist economics : What distinguishes Buddhist economics from modern economics in its approach to material wealth? To natural resources? With which approach are you more sympathetic and why?

Use of productivity standards-sales volume and schedules : In the restaurant industry, how do you manage payroll costs through the use of productivity standards, sales volume, and schedules.

Write the equation for the medical isocost of afc : It has been estimated that an additional doctor could increase the daily output of the clinic by 25 patients, while an additional nurse would increase the number of patients served in a day by only 10. What is the marginal rate of substitution bet..

Part of life is subject that ranges from fear to celebration : In many cultures, the last part of life is a subject that ranges from fear to celebration – from avoidance to serenity. In nearly every instance, it also invites self-reflection about the choices we make about how we live.

Determine what is the unemployment rate : The overall population for Region A is 125 million people. The workforce contains 67 million people. 38 million people are employed, while 29 million are unemployed. What is the unemployment rate

Explain that us bureau of labor statistics classifies people : The United States Bureau of Labor Statistics classifies people in the U.S. into three broad groups based on their employment status: those who are employed, those who are unemployed and those not in the labor force.

Find out which gases remain after the reaction : Determine which gases remain after the reaction goes to completion and calculate their partial pressures. The temperature at the beginnning and the end of the experiment is 22 °C.

User Account

All Pages