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:

Check Register

A record book or a ledger that tracks all the checks written, deposits made, and current balance of a checking account.

Deposit

A deposit is a sum of money placed into an account or given as security for a financial transaction.

Cash Balance

The amount of cash a company or an individual has available after all transactions have been accounted for.

Deposits

Sums of money placed into an account or with a financial institution for safekeeping and/or to earn interest.