City Home Care (CHC) hires a furnished office at $4000 per month, telephones at $400 a month, and a secretary at $4000 per month. These resources do not change, no matter how many clients are visited. Currently, CHC sees 900 patients a month, each three times (2700 visits in total). CHC uses 30 full-time nurses with their own cars, and they are paid $8000 per month each. There is a plentiful supply of additional nurses in town. These nurses can be hired almost on notice. Supplies are $40 per patient per month. What are the monthly money costs of operating CHC at its current level? Approximately how much would it cost to operate CHC at a level of 3150 visits per month assuming patients continued to be seen three times each month, and nurses were working at full capacity at the original level of patient visits?

City Home Care (CHC) hires a furnished office at $4000 per month, telephones at $400 a month, and a secretary at $4000 per month. These resources do not change, no matter how many clients are visited. Currently, CHC sees 900 patients a month, each three times (2700 visits in total). CHC uses 30 full-time nurses with their own cars, and they are paid $8000 per month each. There is a plentiful supply of additional nurses in town. These nurses can be hired almost on notice. Supplies are $40 per patient per month. What are the monthly money costs of operating CHC at its current level? Approximately how much would it cost to operate CHC at a level of 3150 visits per month assuming patients continued to be seen three times each month, and nurses were working at full capacity at the original level of patient visits?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.9P

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