A Clinic Uses Doctors and Nurses to Serve the Maximum

question 100

Multiple Choice

A clinic uses doctors and nurses to serve the maximum number of patients given a limited annual payroll. The clinic currently has 10 doctors and 30 nurses. The last doctor hired can serve 300 additional patients, while the last nurse hired can serve 200 additional patients. If doctors make $60,000 a year and nurses make $20,000 a year, the clinic

• A) is making the correct hiring decision because doctors are more productive than nurses.
• B) is making the correct hiring decision because doctors are paid more than nurses.
• C) could serve more patients with the same payroll by hiring more doctors and fewer nurses.
• D) could serve more patients with the same payroll by hiring more nurses and fewer doctors.

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Definitions:

Amortized

The process of paying off a debt through regular payments, where each payment covers both interest and a portion of the principal amount.

Compounded Annually

Interest on an investment is calculated once a year, with the interest added to the principal.

Equal Payments

Equal payments refer to the financial concept where the amount of money paid in each installment of a loan or investment is the same throughout the term.

19th Payment

Refers to the nineteenth installment in a series of scheduled payments for a loan or mortgage.