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    Perform cost benefit analysis.

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    The following is a labor supply function:
    Wage per hour Quantity of Nurse Supplied
    $2 1
    4 2
    6 3
    8 4
    10 5
    12 6
    Nurses are used by the clinic pt provide clinic visits. Each visit brings in $2 in revenue for the clinic. The relationship between nursing units and clinic visits is as follows:
    Quantity of Nurses Total Clinic Visits
    1 5
    2 9
    3 12
    4 14
    5 15
    The provider is assumed to maximize profits. Determine the provider's equilibrium wage and how many nursing units it will hire. The provider is a monopolist, which means it is the sole purchaser of labor in the market.

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    Solution Summary

    The expert preforms a cost benefit analysis.