Suppose that a medical school provides three outputs—patient care, education, and research—and that the total cost of the school is $100 million per year. If the school produced only education, its costs would be $60 million. If the school produced only patient care, its costs would be $30 million. If it produced only research, the costs would be

$20 million. Joint costs for each pair would be $10 million.

(a) What are the pure costs of education, patient care, and research?

(b) What are the joint costs?