Suppose a hospital is currently producing 100 inpatient days per day with 20 physicians and 50 nurses.The hospital receives a grant to provide low-cost care.The grant includes funds to double the size of the nursing staff.After the grant,the hospital produces 150 inpatient days per day.What is the marginal product of nurses?

Question

Quizplus · Accepted Answer

The change in production is equal to 150 - 100 = 50 additional inpatient days.The size of the nursing staff doubled,indicating 50 additional nurses were added to the staff.Therefore,the marginal product of nurses resulting from the change is 50/50 = 1.

Suppose a Hospital Is Currently Producing 100 Inpatient Days Per