Posted by **Matty64** on Wednesday, August 26, 2009 at 9:24pm.

The Qwik Serve Clinic always has three M.D.s and eight R.N.s working at its 24-hour clinic, which serves customers with minor emergencies and ailments. The clinic has hired an efficiency expert to examine its operations and make suggestions for reducing costs. For some of the medical procedures done at the clinic, experienced nurses can perform the medical tasks approximately as well as the physicians can, as long as the nurses are supervised by MD's. Since MD's are more highly trained than nurses, the marginal product of MD is higher than the marginal product of RN's. The manager of the clinic is confused by the efficiency consultant's report because the report recommends using more RN's and fewer MD's to lower the cost of providing a given level of medical services. Under what circumstnces would it be economically efficient for this clinic to use more RN's and fewer MD's (given MPmd>MPrn)?

## Answer This Question

## Related Questions

- Managerial Econ - The Qwik Serve Clinic always has three M.D.s and eight R.N.s ...
- Statistic - Community physician's clinic is buying the medical center physician'...
- Statistics - A private medical clinic wants to estimate the true mean annual ...
- Healthcare finance - You are considering starting a walk-in clinic. Your ...
- Statistics - A private medical clinic wants to estimate the true mean annual ...
- Statistics - community physicians clinic is a large clinic with 85 physicians. ...
- Economics - A clinic has $1 million in revenues and $950,000 in costs. What is ...
- law - news paper calls a rehab clinic and asks if a celebrity is a patient.....
- English - Does the term "outpatient clinic" mean the same thing as the term "...
- Healthcare Finances - You are considering starting a walk-in clinic. Your ...

More Related Questions