A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year. If doctors make $64,000 a year and nurses make $40,000 a year, then
A. the clinic is making the correct decision.
B. the clinic is not making the correct decision because the additional patients per dollar spent on doctors is greater than the additional patients per dollar spent on nurses.
C. the clinic could serve more patients by hiring more doctors and fewer nurses.
D. the clinic could serve more patients by hiring fewer doctors and more nurses.
E. a and d
Answer: A
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Refer to Figure 4-3. Kendra's marginal benefit from consuming the third ice cream cone is
A) $13.00. B) $2.50. C) $1.50. D) $0.50.
Costs that accrue to the total population are called ____ costs. Costs incurred by the producer or consumer who makes the decision are called ____ costs
a. negative; positive b. social; private c. private; social d. positive; negative
The Phillips curve shows the trade-off between rates of inflation and rates of unemployment
Indicate whether the statement is true or false
Which of the following is an example of an implicit cost that a firm might incur?
A) the out-of-pocket expense to hire resources B) taxes owed to the state and Federal governments C) the rental value of the office space the company owns and uses for itself D) the revenue a firm generates in using its resources