A study published in Social Science Medicine, “Production Functions for General Hospitals,” estimated the following general hospital production function: Q = 5*Staff.34*Beds.64*Drugs.04*Specialists.02, where Q is a measure used by the authors for patient care. Hospital Management has set a target of Q = 50. Suppose input prices are Pstaff = 12, Pbeds = 5, Pdrugs = 15, Pspecialists = 30. Use Excel Solver or otherwise to find the following: How many Staff and Specialists should Hospital Management employ to produce Q = 100 and minimize cost of production for that output?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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ISBN:9780079039897
Author:Carter
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Chapter4: Equations Of Linear Functions
Section: Chapter Questions
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A study published in Social Science Medicine, “Production Functions for General Hospitals,” estimated the following general hospital production function: Q = 5*Staff.34*Beds.64*Drugs.04*Specialists.02, where Q is a measure used by the authors for patient care. Hospital Management has set a target of Q = 50. Suppose input prices are Pstaff = 12, Pbeds = 5, Pdrugs = 15, Pspecialists = 30. Use Excel Solver or otherwise to find the following: How many Staff and Specialists should Hospital Management employ to produce Q = 100 and minimize cost of production for that output?

  A.

8.293; .195.

  B.

5.59; .082.

  C.

9.654; 5.672.

  D.

.20.453; 2.136.

  E.

18.751; 3.468

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