Economics For Healthcare Managers
4th Edition
ISBN: 9781640550483
Author: Robert H. Lee
Publisher: Health Administration Pr
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 8E
To determine
Calculation of average and incremental costs.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages per day. One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
One fitness club charges a $10 promo sign-up fee and $15 per month. Another club charges a $25 promo signup fee and $10 per month. For what number of months is the cost of the clubs equal?
BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form.
Form Type
Mix of Forms
Form Cost
A
0.2
$0.80
B
0.2
$0.40
C
0.2
$0.40
D
0.2
$1.60
E
0.2
$0.80
The expected cost of digitizing a form is $__________-
.
Suppose the client and BPO agree to a deal, whereby the client pays BPO to digitize forms. The price of each form processed is equal to the expected cost of the form that you calculated in the previous part of the problem.
Suppose that after the agreement, the client sends an equal mix of forms of types D and E only.
The expected digitization cost per form of the forms sent by the client is $___________
. This leads to an expected loss of $__________ per form for BPO. (Hint: Do not round your answers. Enter the loss as a positive number.)
Knowledge Booster
Similar questions
- What is the difference between a price analysis and a cost analysisarrow_forwardWhich of the following statements correctly explains the concept of marginal cost associated with running a clinic? Show answer choices Every patient treated results in reimbursement determined by a third party payer Every patient treated results in $365 of additional revenue The electricity bill stays constant regardless if a clinic treats 50 patients per week or 5 patients a week The additional cost of treating an additional patient by the clinic, such as waiting time.arrow_forwardYou were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?arrow_forward
- I need manual solution,not Excel. Please note itarrow_forwardThe northern community of Assiniboine Narrows has a population of 12,000. It has one medical clinic with three doctors, each working 40 hours per week. Each doctor sees four patients per hour. The clinic would like to hire one or two more doctors. The mortality rate in the community is 11 per 1,000 population. This rate will fall to 9.5 per thousand if one doctor is added and to 9 per thousand if two doctors are added. Each new doctor will cost the system $250,000 per year. An alternative plan is to bring in two home care nurses. Each home care nurse will see two patients per hour. The addition of the first nurse will reduce the mortality rate by 0.8 per thousand, and the addition of a second nurse will reduce the mortality rate by 0.6 per thousand. Each home care nurse will cost the system $100,000 per year. Use calculations to examine the alternatives available to Assiniboine Narrows. Then, based on your calculations, make a recommendation as to the preferred course of action. Ensure…arrow_forwardfast urgent.arrow_forward
- You serve 3,000 private-pay patients and 1,000 health maintenance organization (HMO) members. Your fixed costs are $50,000 and your incremental cost is $50. You currently charge private-pay patients $75 and HMO members $60. This line of business is profitable. Profits would increase if you stopped serving HMO members. You should stop serving HMO members if fixed costs increased to $60,000. All of the abovearrow_forwardProcess mapping is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities, (waste) or delays within a process. Process mapping is valuable in purchasing, especially when attempting to streamline the flow of material or information between suppliers and a purchaser.arrow_forwardWhy is cost-minimization analysis most likely to be useful for managers?arrow_forward
- How would a long-run average cost curve differ between a private hospital and a snack manufacturing company, and how would it affect the maxiumum output level in each company?arrow_forwardWhen comparing a gross lease to a NNN lease, some of the key differences being lower rent for the tenant at the risk of paying any additional cost out of pocket such as repairs. This would normally be the responsibility of the landlord as with a gross lease. Although the tenant has more control, this also means more risk for them and work of upkeep. This makes a NNN more beneficial for a landlord, and may explain why it’s more common on commercial properties. Residential tenants tend to give gross leases in case any expenses arise the situation will be covered without extra cost to the tenant. This is a discussion from one of my classmates I'm supposed to respond to their post it's only a discussionarrow_forwardThe owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of going out of business. Sales have remained constant for quite some time and now he is looking at ways to cut expenses to stay in business. Which of the following expenses is his best choice to try to immediately reduce and save him meaningful dollars so he can remain in business? (Hint: First consider which ones he has ultimate control over?) Rent expense Utilities expense Payroll expense Shop insurance expense Advertising expensearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning