Given the production function between nurse hours and patient visits per day to

Question

Given the production function between nurse hours and patient visits per day to a community clinic, how will each of the following shift this function:

a. A change in nurse remuneration from salary to fee for service

b. A change in the case mix of patients, with more having leukemia and fewer having common colds

c. A change in policy to provide more thorough examinations

d. Higher nurse wages

e. A requirement that each patient now be told all his or her legal rights before an examination

f. An increase in the total number of nurses who are hired

g. An increase in the clinic's budget

Explain

Explanation / Answer

Production function (P) = V / N

{Where N = Nurse hours per day, V = Patient visit per day}

a.

If the remuneration is changed from salary to fee, production function would be upward slopping from the origin (0, 0). It means increase in patient visit increases remuneration too.

b.

If the case mix of patient is changed, the production function would be as below

P = (L / N1) + (C / N2)

{Where N1 = Nurse hours per day for leukemia, N2 = Nurse hours per day for colds, L = number of leukemia patients, C = Number of colds patients}

c.

If the examination time is increased, number of visits will be reduced. It reduces the production function.

d.

Higher wages indicates more production. It might be the case where number of visits increase.

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.