The Grinch Clinic pays its nurses $20 an hour. It also pays $100 a week rent and has other weekly overhead costs of $50. Supply costs are $1 per patient. The short-run production function, relating patient visits and hursing hours, is shown here. Given this relationship and the other specified data, calculate the total variable, total fixed, and total costs; average costs (variable, fixed, and total); and marginal costs at each output level.
Patient Visits: 1 - 2 - 3 - 4 - 5 - 6
Nursing Hours: 2 - 4 -8 - 14 - 22 - 32
I understand the Total Fixed Costs is $150; I also have the nurse cost, which is the nurses hours multipled by $20 per hour rate. What I don't understand is how to get the Total Variable Cost (TVC). Textbook shows the Total Variable Costs plus the Patient Visit. For example the first TVC is 41 (40 + 1 Patient Visit). Is this correct way to gete the TVC? If so, please explain. I believe once I understand how to get the TVC that I will be able to get the Total Cost, Average Total Cost and Marginal Cost.
Please help. Thank you.
The Grinch Clinic pays its nurses $20 an hour. It also pays $100 a week rent and has other weekly overhead costs of $50. Supply costs are $1 per patient. The short-run production function, relating patient visits and hursing hours, is shown here. Given this relationship and the other specified data, calculate the total variable, total fixed, and total costs; average costs (variable, fixed, and total); and marginal costs at each output level.
Patient Visits: 1 - 2 - 3 - 4 - 5 - 6
Nursing Hours: 2 - 4 -8 - 14 - 22 - 32
I understand the Total Fixed Costs is $150; I also have the nurse cost, which is the nurses hours multipled by $20 per hour rate. What I don't understand is how to get the Total Variable Cost (TVC). Textbook shows the Total Variable Costs plus the Patient Visit. For example the first TVC is 41 (40 + 1 Patient Visit). Is this correct way to gete the TVC? If so, please explain. I believe once I understand how to get the TVC that I will be able to get the Total Cost, Average Total Cost and Marginal Cost.
Please help. Thank you.
