A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. One day, the firm decides it would like to produce 16 units of medical services and 5 units of secretarial services. This output level is
A) efficient.
B)unattainable.
C)inefficient.
D)costless.
E)attainable and efficient.

Question

Quizplus · Accepted Answer

The clinic does not have the capacity to produce 16 units of medical services and 5 units of secretarial services with only 10 workers. Each worker can only produce a maximum of 2 units of medical services, so to produce 16 units, the clinic would need to have at least 8 workers dedicated solely to medical services. However, the clinic only has 10 workers in total, meaning that it is impossible to produce both the desired level of medical and secretarial services with the current resources. This represents an inefficient production level due to the inability to meet desired outputs with available inputs.

A Medical Clinic Has 10 Workers