1.You manage a physician office and pay an administrative assistant to answer phones, manage and welcome patients.Her salary is fixed at $20,000 per year.You see 2,000 patients per year. If you receive $100 per patient visit and must spend $10 in medical supplies and $50 in other costs.

a)Calculate the average cost per patient

b)If you start seeing 5000 patients per year, what happens to average costs? Are you facing economies of scale or diseconomies of scale? Explain

c)What are your profits tending to 2000 patients vs 5000 patients?

d)At you place of work do you think you face economies of scale or diseconomies of scale? Explain.