A Clinic Uses Doctors and Nurses Optimally and Is Servicing

question 99

Multiple Choice

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year.
-If doctors make $50,000 a year and nurses make $40,000 a year, then

• A) the clinic could serve more patients by hiring more doctors and fewer nurses.
• B) the clinic could serve more patients by hiring fewer doctors and more nurses.
• C) the clinic is making the correct decision.
• D) the clinic is not making the correct decision because the additional patients per dollar spent on doctors is greater than the additional patients per dollar spent on nurses.
• E) a and d

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Definitions:

Payment Split

The division of a total payment amount into smaller, individual payment parts, often used to manage cash flow or allocate funds to different purposes.

Written Agreement

A formal contract documented in writing between two or more parties outlining the terms and conditions of an agreement.

Purchasing

The process of acquiring goods, services, or works from an external source, often via a contract.

Investing Assets

Assets acquired for the purpose of generating income from investments rather than for use in the company's main business operations.