Assignment:
Questions 1. Concern how you can derive the data underlying Figure Guinness and Wiseman by using the concept of compere advantage.
The Catalina Clinic has six nurses that can give Tensions and/or treat angin cases. The number of TB consults or angina cases each nurse is capable of during a typical day are given in the following table.
|
Nurse ID
|
Number of TB consultations
|
Number of angina cases
|
|
001
|
9
|
6
|
|
002
|
6
|
9
|
|
003
|
10
|
8
|
|
004
|
10
|
5
|
|
005
|
7
|
7
|
|
006
|
12
|
4
|
Nurse 002, for example, could give 6 TB consultations or treat 9 angina cases or any linear combination of the two, such as 2 TB consultations and 6 angina cases. The table does not mean nurse 002 can do 6 TB consultations and 9 angina cases in the same day.
1. Which nurse has the absolute advantage in TB consultations?
2. Which nurse has the absolute advantage in treating angina cases?
3. What is nurse 004's opportunity cost of a TB consultation, in terms of angina cases foregone?
4. What is nurse 006's opportunity cost of treating an angina case, in terms of TB consultations foregone?
5. Which nurse has the comparative advantage in TB consultations?
6. Which nurse has the comparative advantage in treating angina cases?
Assuming the clinic uses the nurses to maximize the production of one activity, given the level of the other activity, fill in the following table. You are given the number of TB cases and need to calculate the maximum number of angina cases given that number of TB cases. You are essentially reporting five points along the clinic's production possibilities frontier. Record your answers to two decimal places.
Questions 2. The table below gives the short-run total product values for a lab that has daily fixed costs of $500. Each lab technician is paid $400 per day.
|
Number of lab technicians
|
Tests conducted per day
|
|
1
|
20
|
|
2
|
50
|
|
3
|
90
|
|
4
|
130
|
|
5
|
165
|
|
6
|
195
|
|
7
|
220
|
|
8
|
235
|
|
9
|
245
|
|
10
|
250
|
Using the above information, answer the following questions:
1. What is the marginal product of the 7th lab technician?
2. What is the total variable cost with 9 lab technicians?
3. What is thr total lixed cost with 4 lab technicians?
4. What is the total cost with 8 lab technicians?
5. What number of lab technicians minimizes average total costs?
6. What is the average total cost for the number of lab technicians you gave AS: Answer to the prior question?
Questions 3
The table below is similar to Table Guinness and Wiseman. You will be using this information to answers questions similar to what is found in Table of Guinness and Wiseman. Each vehicle has a fixed cost of $60 per day and each nurse is paid $300 per day.
|
Vehicles
|
Nurse
|
|
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
|
0
|
10
|
20
|
30
|
40
|
44
|
48
|
52
|
56
|
60
|
|
1
|
30
|
40
|
50
|
60
|
70
|
90
|
120
|
150
|
180
|
|
2
|
30
|
60
|
120
|
180
|
260
|
300
|
340
|
360
|
380
|
|
3
|
30
|
60
|
180
|
300
|
360
|
400
|
400
|
400
|
400
|
|
4
|
30
|
60
|
200
|
360
|
390
|
400
|
400
|
400
|
400
|
|
5
|
30
|
60
|
200
|
360
|
400
|
400
|
400
|
400
|
400
|