### Compute the profit at the end of each year

Assignment Help Microeconomics
##### Reference no: EM13119174

You are the manager of the surgery department at a hospital which serves mostly Medicare patients. The hospital performs 1,000 surgical operations per year using the traditional method. The Medicare payment for a surgical operation using the traditional method is 2,250 dollars and the cost to the hospital per operation it 1,750 dollars.

You have the option to purchase a Robotic Surgery Machine to perform the surgical operations. The medicare payment for a surgical operation using a Robotic Surgery Machine is 2,500 dollars. In addition, a surgical operation using a Robotic Surgery Machine has a lower cost per operation of 1,500 dollars.

a) Compute the profit at the end of each year if the hospital continues to use the traditional method for surgical operations.

b) Compute the profit at the end of each year if the hospital uses a Robotic Surgery Machine for surgical operations.

c)For simplicity, assume that the life of the machine is 3 years. In addition, assume the opportunity cost of funds (interest rate) is 10% per year.

i) If the cost of a Robotic Surgery Machine is 1,000,000 dollars, should the hospital buy the machine?

ii) If the cost of a Robotic Surgery Machine is 1,250,000 dollars, should the hospital buy the machine?

### Previous Q& A

#### Question about fermat and wilson theorems

Please help me with this problem: What is the remainder when 314^164 is divided by 165? (Watch out - 165 is not prime!) Please show all work. Thanks in advance for the help.

#### Find the theoretical probability of undesirable side effects

The theoretical probability of undesirable side effects resulting from taking Grebex is 1 in 12. If 600 people take Grebex to lower their blood pressure, how many will encounter undesirable side effects?

#### Determine the molality of the solution

An sulphuric acid solution has a concentration 3.75 M and a density of 1.230 g/cm3. Determine the molality of the solution.

#### Evidence that population mean weight of hats is greater

A sample of 350 hats is selected and the sample mean is 3.25 pounds. Using a level of significance of .10, is there evidence that the population mean weight of the hats is greater than 3.5 pounds? Fully explain your answer.

#### Determining annuities and sinking funds

Carolyn Ellis is setting up an annuity for her retirement. She can set aside \$2,000 at the end of each year for the next 20 years and it will earn 6% annual interest.

#### Find that optimal amount

Suppose the price of c increases to 2, while income remains constant and what happens to the consumption of c and h? Are c and h substitute goods, complementary goods, or neither?

#### What should be maximum speed of the car so it can round

Suppose the highway is icy and the coefficient of friction between the tires and pavement is only one-third what you found in part A. What should be maximum speed of the car so it can round the curve safely?

#### How much hcl gas can be produced

How much HCl gas can be produced at STP by reacting 198 g of NaCl with excess H2SO4?NaCl + H2SO4 ! NaHSO4 + HCl.

#### Determining rational exponents

Using this model, find the percentage of participation that can be expected if \$5million is spent on this recycling project? Set up an equation and solve algebraically. Round to the nearest whole percent.

#### Find complementary events

Complementary events. A pair of fair dice is rolled. Let E denote the event that the number landing uppermost on the first die is a 3, and let F denote the event that the sum of the numbers landing uppermost is 6. Determine whether E and F are ind..

### Similar Q& A

#### Compare the path of economic growth

Compare the path of economic growth using GDP, GDP growth, and GDP per capita. Compare the evolution of Agriculture and Manufacture as components of GDP.

#### Determining producers surplus

Find out the price p0 = S(q0) at which q0 units will be supplied and compute the corresponding producers' surplus PS. Sketch the supply curve y = S(q) and shade the region whose area represents the producers' surplus.

#### Plot the growth rate for techistan and growthistan

Compare the two graphs for GNP for Techistan and Growthistan. What is the difference in the final value of GNP for each country and Plot the growth rate for Techistan and Growthistan on one plot.

#### Benefits of pursuing additional education

What are the marginal costs and benefits of pursuing additional education and inherent risks associated with this decision?

#### Role of advertising for marketplace

In the early 1980's just as serious health effects were being noted regarding sugar consumption, Kellogg's changed the name of Sugar Pops to Corn Pops (the sugar content didn't change) and the name of Sugar Flakes to Frosted Flakes (still sugar co..

#### Price discrimination in various products

Airline fares are bigger in summer than in winter. Some railroads charge lower fares during week than on weekends. Electric firms charge customers lower rates the more electricity they use.

#### Determining price of labor and capital

Given production function Q= 100(L^0.5)(K^0.5), where L = labor hours per unit time, K=machine hours per unit time, and Q=output per unit time.

#### Determining government purchases

What is the initial effect of the tax reduction on aggregate demand? What additional effects follow this initial effect? What is the total effect of the tax cut on aggregate demand?

#### What were the provisions of the glass-steagall act

What is adverse selection? How does it harm the economic process and what is moral hazard? What are its consequences

#### Computing maximum profit and revenue

Assume that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.

#### Explanation to price discrimination

Which of the following is NOT a condition for price discrimination? Different groups of consumers should be charged differing prices for the same product. The firm's demand curve should be downward sloping. 