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 $40,000 a year, what do nurses make?
a. $25,000 a year
b. $20,000 a year
c. $15,000 a year
d. $10,000 a year
If doctors make $80,000 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 because doctors are more productive than nurses.
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. both a and d above