Cost Analysis Question

Posted: August 25th, 2021

Cost Analysis Question

Student’s Name

Institutional Affiliation

Cost Analysis Question

Nurse ID	Number of TB Consultations	Number of angina cases
001	9	6
002	6	9
003	10	8
004	10	5
005	7	7
006	12	4

1. Which nurse has the absolute advantage in TB consultations?

Nurse 006

• Which nurse had the absolute advantage in treating angina cases?

Nurse 002

• What is nurse 004’s opportunity cost of a TB consultation, in terms of angina cases foregone?

5/10 = 1/5

• What is nurse 006’s opportunity cost of treating an angina case, in terms of TB consultations foregone?

12/4 = 3

• Which nurse has the comparative advantage in TB consultations?

Nurse 006

• Which nurse has the comparative advantage in treating angina cases?

Nurse 002

Question 7-11

Number of TB Cases	Number of Angina Cases
0	39
13	31
26	15
39	8
52	2

Number of Lab Technicians	Tests Conducted per Day	Fixed Cost	Variable Cost	Total Cost	Marginal Cost
1	20	500	400	900	0
2	50	500	800	1300	400
3	90	500	1200	1700	400
4	130	500	1600	2100	400
5	165	500	2000	2500	400
6	195	500	2400	2900	400
7	220	500	2800	3300	400
8	235	500	3200	3700	400
9	245	500	3600	4100	400
10	250	500	4000	4500	400

12. What is the marginal product of the 7t lab technician?

$400

13. What is the total variable cost with 9 lab technicians

$4100

14. What is the total fixed cost with 4 lab technicians?

$500

15. What is the total cost with 8 lab technicians?

$3700

16. What number of lab technicians minimized average total costs?

1

17. What is the average total cost for the number of lab technicians you gave in the previous question?

$900

Question 18- 31

Total Product	Total Cost ($)	Average Cost ($)
30	900	30.00
40	660	16.50
60	1260	21.00
180	1320	7.33
200	1140	5.70
360	1680	4.67
400	2760	6.90