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Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day.
a. Write the equation for the medical isocost of AFC.
b. It has been estimated that an additional doctor could increase the daily output of the clinic by 25 patients, while an additional nurse would increase the number of patients served in a day by only 10. What is the marginal rate of substitution between doctors and nurses?
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