Question

Pricing and demand will be taken as exogenously determined. Your goal in each part of this assignment is to efficiently use the inputs. This starts with what might be termed the short short-run, where all inputs are fixed, but they can be reallocated to different purposes. It then moves to the short-run, where some inputs (e.g., labor) is variable, but other inputs (e.g., capital) are fixed. It concludes with the long-run, where all inputs are variable.

Part A: The ‘short short-run’

The 4-A clinic consists of four workers (Sam, Ann, Trey, and Lina) who share some or all of the following tasks: performing a medical procedure, follow-ups, and tests. The data below gives their time per task, in minutes. Assume that each can work up to six hours per day (e.g., 360 minutes) at these tasks, but no more. ‘N/A’ means that the individual isn’t qualified to perform the medical procedure.

Individual	Medical procedures	Follow-ups	Tests
Sam	21	10	5
Ann	15	9	6
Trey	N/A	20	8
Lina	N/A	18	6

Each patient seen will ultimately need one medical procedure, two routine follow- ups, and three routine tests.

Initial scenario:

• For each patient that Sam sees, he does one follow-up and one test.
• Trey is Sam’s assistant; for each patient that Sam sees, Trey does one follow-up and two tests.
• For each patient that Ann sees, she does one follow-up and one test.
• Lina is Ann’s assistant; for each patient that Ann sees, Lina does one follow- up and two tests.

1. Calculate the number of ‘patient-equivalents’ that can be handled during a workday. If you have 4 medical procedures, 8 follow-ups, and 12 tests, that counts as four patient-equivalents, so your answer would be 4. In solving for this, you must use whole numbers; no partial patients are allowed. Some staff may be partially idle. You are reporting the aggregate for the four workers. Your score on this question will be based on how close you are to the correct answer without going over.

Answer 1

It is assumed that patients seen by Sam and Ann are exclusive.