We will assume that the fixed cost for the cleaning supply for the hospital is $10 and
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- We will assume that the fixed cost for the cleaning supply for the hospital is $10 and the cost of each cleaning crew hired is $5 per hour.
Labor | TP | MP | AP | TFC | TVC | TC | MC | AFC | AVC | ATC |
0 | 0 | |||||||||
1 | 3 | |||||||||
2 | 8 | |||||||||
3 | 14 | |||||||||
4 | 19 | |||||||||
5 | 23 | |||||||||
6 | 26 | |||||||||
7 | 28 | |||||||||
8 | 29 | |||||||||
9 | 28 | |||||||||
10 | 26 |
- Complete the above table.
- Draw AP and MP on one graph.
- Draw MC, AFC, AVC, ATC on one graph.
- The table shows the production of inpatient services at Newton-Wellesley Hospital. The hospital pays $100 a day for each medical equipment it rents and $500 a day for each doctor it hires.
Labor | Output (Inpatient services per day) | |||
doctors per day | Clinic 1 | Clinic 2 | Clinic 3 | Clinic 4 |
1 | 20 | 40 | 55 | 65 |
2 | 40 | 60 | 75 | 85 |
3 | 65 | 75 | 90 | 100 |
4 | 75 | 85 | 100 | 110 |
Medical equipment | 1 | 2 | 3 | 4 |
- Calculate ATC curves for each clinic and graph four of them on one chart.
- Draw hospital’s long-run average cost curve.
Expert Answer:
Ans A Marginal product is the net addition total product when additional unit of labour is employed ... View the full answer
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