1. Suppose that with 400 patients per year, the SAFC, SATC, and SMC of operating a physicianclinic are $10, $35, and $30 per patient, respectively. Furthermore, supposethe physiciandecides to increase the annual patient load by one more patient. Usingshortrun costtheory,
2. I.The new SAVC will increase
3. II.The new SAVC will decrease
4. III. The new SATC will increase
5. IV.The new SATC will decrease
6. I only
7. II only
8. III only
9. IV only
10. I and III
11. II and III
12. I and IV
13. II and IV
14. Not enough information to determine the correct answers.

The _______ of nurses is represented as the change in medical services provided by an additional unit of nurse-labor.

1. marginal product
2. marginal cost
3. average product
4. opportunity cost
5. none of the above

If the Marginal Product of Nurse Labor is increasing then the Total Product is rising at a decreasing rate.

1. True
2. False