16. Skip, the manager of a local senior living facility, has been under a lot of pressure from his regional manager because the occupancy rate at his facility is 80%. Given his fixed costs, if he wants his average per patient costs to equal his company’s average per patient cost (which is lower than Skip’s), he needs to increase his occupancy rate to 90%. When he does this, he will be taking advantage of Group of answer choices a. Economies of scale b. Marginal analysis c. Opportunity costs d. Economies of scope 17. When Sabrina reduced the price of her hourly accounting rates, her clients asked her to devote more hours to the financial aspects of their businesses. Her clients’ responses reflect the
16. Skip, the manager of a local senior living facility, has been under a lot of pressure from his regional manager because the occupancy rate at his facility is 80%. Given his fixed costs, if he wants his average per patient costs to equal his company’s average per patient cost (which is lower than Skip’s), he needs to increase his occupancy rate to 90%. When he does this, he will be taking advantage of Group of answer choices a. Economies of scale b. Marginal analysis c. Opportunity costs d. Economies of scope 17. When Sabrina reduced the price of her hourly accounting rates, her clients asked her to devote more hours to the financial aspects of their businesses. Her clients’ responses reflect the
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please solve 16 and 17. Thank you!.
16. Skip, the manager of a local senior living facility, has been under a lot of pressure from his regional manager because the occupancy rate at his facility is 80%. Given his fixed costs, if he wants his average per patient costs to equal his company’s average per patient cost (which is lower than Skip’s), he needs to increase his occupancy rate to 90%. When he does this, he will be taking advantage of
Group of answer choices
a. Economies of scale
b. Marginal analysis
c. Opportunity costs
d. Economies of scope
17. When Sabrina reduced the price of her hourly accounting rates, her clients asked her to devote more hours to the financial aspects of their businesses. Her clients’ responses reflect the
Group of answer choices
a. Law of unintended consequences
b. Law of supply
c. Law of demand
d. Economies of scale
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