Nora, the manager of three hospital rehabilitation clinics, has the clinics adopt software that allows better tracking of supplies. This software adoption also allows therapists to spend less time gathering supplies for therapy sessions. On average, each therapist can meet with one more patient per day. The marginal revenue product of the therapists will _____, and the demand for therapists at the clinics will _____.

Question

Quizplus · Accepted Answer

By allowing therapists to spend less time gathering supplies and increasing the number of patients they can see, the marginal revenue product of therapists will increase. This means that the demand for therapists at the clinics is likely to increase as well, as the clinics will need to hire more therapists to meet the increased demand for services.

Nora, the Manager of Three Hospital Rehabilitation Clinics, Has the Clinics