Suppose Québec's Largest Nursing Union, Fédération Interprofessionelle De La Santé

question 1

Multiple Choice

Suppose Québec's largest nursing union, Fédération interprofessionelle de la santé du Québec (FIQ) , successfully secured a 12 percent increase in the wages of registered nurses.If a hospital responds by reducing the quantity of registered nurses hired and increasing the quantity of physician's assistants hired, what conclusion can you draw?

• A)Physician's assistants are more valuable in terms of their productivity.
• B)The price elasticity of demand for registered nurses is negative while the price elasticity of demand for physician's assistants is positive.
• C)The cross-price elasticity of demand between registered nurses and physician's assistants is positive.
• D)The cross-price elasticity of demand between registered nurses and physician's assistants is negative.

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Definitions:

TC

An abbreviation commonly used for Total Cost, which encompasses all costs incurred in the production of goods or services.

Scale Of Operation

Refers to the size at which a particular business or factory operates, considering factors like output, capacity, or the amount of work it can perform.

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the cost of producing one additional unit of goods.

Shutdown Point

The level of output and price at which a firm's revenue just covers its variable costs, below which it would be better for the firm to cease operations.