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Suppose that a medical school provides three outputs--patient care, education, and research--and that the total cost of the school is $100 million per year. If the school produced only education, its cost would be $60 million. If the school produced only patient care, its costs would be $30 million. If it produced only research, the costs would be $20 million. Joint costs fore each pair would be $10 million.
a) What are the pure costs of education, patient care, and research?
b) What are the joint costs?
Explain why quality became the most important issue facing American business in the 1980s. In addition to economic competition from Japan, what other factors may have contributed to the importance that quality has assumed?
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Comparing Investment Criteria Mario Brothers, a sport producer, has a new idea for an exploration sport.
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