The Megabuck Hospital Corp

question 148

Short Answer

The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. State regulations require that every subsidized nursing home must house a minimum of 1,200 homeless patients and no more than 910 high-income patients in order to qualify for state subsidies. The overall capacity of the hospital is to be 2,700 patients. The board of directors, under pressure from a neighborhood group, insists that the number of homeless patients should not exceed twice the number of high-income patients. Due to the state subsidy, the hospital will make an average profit of $10,000 per month for every homeless patient it houses, whereas the profit per high-income patient is estimated at $9,000 per month. How many of each type of patient should it house in order to maximize profit
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If no optimal solution exists enter no solution in each box.
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Number of homeless patients = __________
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Number of high-income patients = __________

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Definitions:

New Deal Liberals

Advocates of the extensive social and economic reforms introduced during Franklin D. Roosevelt's presidency in the 1930s to combat the Great Depression.

Migrant Laborers

Workers who travel from one region to another, including internationally, seeking temporary or seasonal employment.

New Deal

The series of economic measures introduced by President Franklin D. Roosevelt to combat the Great Depression, emphasizing financial reform, job creation, and social welfare programs.

Social Security

A government program that provides monetary assistance to people with an inadequate or no income, especially the elderly, disabled, and unemployed.