A medical clinic employs 10 workers.Each worker can produce a maximum of either 2 units of medical services or 5 units of administrative services a day.The opportunity cost of one more unit of medical services is

Question

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of medical services is the amount of administrative services that must be given up. Since each worker can produce either 2 units of medical services or 5 units of administrative services, the opportunity cost of 1 unit of medical services is 5/2 = 2.5 units of administrative services.

A Medical Clinic Employs 10 Workers