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 could serve more patients by hiring more doctors and fewer nurses.
B)the clinic could serve more patients by hiring fewer doctors and more nurses.
C)the clinic is making the correct decision.
D)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.
E)a and d

Question

Quizplus · Accepted Answer

The clinic is optimizing its resources because the marginal productivity per dollar spent is equal for both doctors and nurses. For doctors, it's 1,600 patients per $64,000, or 25 patients per $1,000. For nurses, it's 1,000 patients per $40,000, or also 25 patients per $1,000. This means the clinic is already making the correct decision by balancing the number of doctors and nurses to serve the maximum number of patients given their budget constraints.

A Clinic Uses Doctors and Nurses Optimally and Is Servicing