A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year. Using marginal analyses discuss the following and explain your answers.
a. If doctors make $40,000 a year, what do nurses make?
b. Is it a correct decision if doctors make $80,000 a year and nurses make $40,000 a year? Explain.
c. Is it a correct decision if doctors make $50,000 a year and nurses make $40,000 a year? Explain.
d. Is it a correct decision if doctors make $64,000 a year and nurses make $40,000 a year? Explain.