Calculate the total cost and minimum cost, Macroeconomics

Consider a hospital that produces output (Q) and has two production inputs, nurse-hours (N) and beds

(B). the hospital faces input costs of WN = 15 and WB = 25. Assume the hospital's production function is: Q =NαB1-α, where α1/2.

a) If the hospital's desired output level is Q = 120, find B∗ and N∗ that minimize cost.

b) What is the hospital's total cost, C, of producing this level of output using B∗ and N∗?

c) Suppose the state government imposes a certificate of need constraint on the number of beds. The new CON rule limits the number of beds to BR = 250. Assuming the hospital would like to keep its output level at 120, how many nurse-hours (NR) will it require?

d) Suppose instead the CON rule limits the number of beds to BR ′ = 100. Again, assuming the hospital keeps its output level constant, how many nurse-hours (NR′) will it now require?

e) What is the hospital's total cost of producing this level of output using BR′ and NR′?

f) Now suppose the hospital must keep its costs equal to its costs before the CON law. How many nurse-hours will it now require? What will its new output level be?

Posted Date: 3/1/2013 5:13:15 AM | Location : United States







Related Discussions:- Calculate the total cost and minimum cost, Assignment Help, Ask Question on Calculate the total cost and minimum cost, Get Answer, Expert's Help, Calculate the total cost and minimum cost Discussions

Write discussion on Calculate the total cost and minimum cost
Your posts are moderated
Related Questions
What is the meaning of Capital - Gross domestic product By capital we characteristically mean manufactured goods which are used to produce other goods and services though are

Discuss how income flows in governed economy, frugal economy, spend their economy.

What is Purchasing power One problem in using exchange rate when comparing GDP per capita between countries is that is fluctuates quite a lot. A way of avoiding dependence on

In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought to eliminate price negotiations between customers and new-car de

Suppose that Michael and Dwight each have a $60 weekly entertainment budget. They pay the same prices for two goods, "an evening reading books" (an ERB) and "an evening of beer and

1) Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.

using a classical labour market , illustrate the effects of a real wage existing in the market that is lower than the equilibrium real wage. what will eventually happen in this lab

An advantage of observing statistics from this range is that it encapsulates both positive and negative performances of the economy helping to produce a much more accurate insight

Suppose the country club bills based on a sample of 4 members are: 383, 1,051, 637, 928. What is the standard deviation for this sample of bills? (please round your answer to 1 dec

I used to think that economic growth ( more production) was only possible / able to occur because banks lent out more than they had (fractional reserve credit banking). Apparently