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UK Healthcare is trying to determine if they are hiring the optimal number of nurses to help with making appointments. Some patients can make appointments
UK Healthcare is trying to determine if they are hiring the optimal number of nurses to help with making appointments. Some patients can make appointments and state their case online using a computer (K) while others can call and make an appointment by speaking to a nurse (L). UK Healthcare purchases K and L in competitive markets at prices r=$60 (per hour) and w=$40 (per hour), respectively. With the firm's current input mix, the marginal product of capital is 20 and marginal product of labor is 15. Is the firm minimizing costs? If not, then what should do they do in terms of hiring and firing of K and L. Explain
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