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The Wellness Center is an organization providing help to distressed students on campus during the two weeks exam period at the end of every semester. You’ve been hired as a business consultant to help the Center develop a hiring policy so that it can provide the most meaningful student service (S) possible. You’ve determined that service can be described as a function of Medical (M) and Counseling (C) staff input as follows: S = M + 0.5C + 0.5MC – C2
The staff budget for the Wellness Center for the coming semester is $1,200.00. Each member of the medical staff costs $60 and each member of the counseling staff costs $30.
(a) Determine the optimal combination of medical and counseling staff for the Wellness Center.
(b) Solve for and interpret the Lagrangian multiplier.
(c) If the Center were required to break even, what fee per service would you recommend that they charge?
March 2016 corn futures are trading at $3.6175/bushel. The market is “paying” producers $0.0975/bushel to store corn to July 1, 2016 (trading at $3.715). How much should the carrying charge be if the monthly storage fee is $0.02/bushel and the averag..
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If the money supply is growing at 8%, the real rate of growth of GDP is 2%, and financial innovations are reducing the demand for money by 0.5% per year, what should the long-run inflation rate be?
Two firms (A and B) are planning to produce a new soft drink for the summer. The soft drinks produced by the two firms can differ only in the level of sugar, aside from that they will be exactly equal. Suppose firm A chooses to produce a soft drink w..
Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the effect of each of the following transactions on commercial bank reserves: Federal Reserve Banks purchase securities from banks. Commercial banks borrow from Federal Reserv..
The economic and financial crisis from 2008 to 2009, also known as the global financial crisis, was considered to be the worst financial crisis since the Great Depression. What are reliable predictors of economic and financial crisis? Describe some a..
BAA is a private company that operates some of the largest airports in the United Kingdom, including Heathrow and Gatwick. Suppose that BAA recently commissioned your consulting team to prepare a report on traffic congestion at Heathrow. Your report ..
In jury selection, one cannot exclude potential jurors on the basis of race or other discriminatory criteria. One question is if this prohibition against discrimination should extend to potential jurors that have physical or mental disabilities. How ..
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