The following is a labor supply function:
Wage per hour Quantity of Nurse Supplied
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
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.
The expert preforms a cost benefit analysis.