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Q. Mrs. Siegal has 2 alternative activities to help relieve her backache. In the 1st, she can visit a physiotherapist. The total time for a physiotherapist visit, including travel also waiting, is 2 hours. Mrs. Siegal earns a wage of $20 an hour. Physiotherapists charge $50 every visit also Mrs. Siegal does not have any health insurance. As a second alternative, Mrs. Siegal can take pain killers. Each pill costs 50 cents also Mrs. Siegal needs to take 30 pills every month. The 2 treatments are not equally effective. The physiotherapy visits yield 10 additional healthy days every month, while the pills yield 6 healthy days.

• a. If Mrs. Siegal can only select one alternative also if she wants to maximize the most healthy days every dollar that she gets, which option will she choose?

• b. If the price of a pill increases to $3, which option will she choose?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9173204

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