Assume That a Doctor Can Earn an Additional $20,000 of Revenue

question 265

Essay

Assume that a doctor can earn an additional $20,000 of revenue each year from keeping his office open for one additional hour per week. What must the additional cost of keeping the office open this additional hour per week be to make staying open for the extra hour economically rational?

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at commercial banks and savings institutions.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring the stability of the financial system.

Branch of Government

A division of government with distinct responsibilities, such as executive, legislative, or judicial.

President and Congress

The executive and legislative branches of the United States government, respectively, with roles in making and enforcing laws.