Extended care facilities are paid on a per diem basis and


Extended care facilities are paid on a per diem basis, and they have an upward sloping supply curve. What will be the effect on supply or quantity supplied in each of the following cases:

-a reduction in the real per diem rate paid to the extended care facility?

-an increase in wages paid to the staff who work in the extended care facility?

-a new cleaner that allows the extended care facility to hire fewer custodial staff?

-a greater supply of home care services (a substitute for extended care facilities)?

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Operation Management: Extended care facilities are paid on a per diem basis and
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