With the nursing shortage found from first question asked the hospital is intersted in finding a solution wherby it can get more nurses but not raise the wage to its existing nurses. a nursing temp agency has moved into the region and can supply as many nurses are needed, at a wage of 30.73 hour

1. How may nurses does the hospital hire via. the temp agency
2. Monopoly- your hospital is the only hospital for hundreds of mile with a particular therapy. The inverse demand functio for this therapy is gives as:

P=$12,500-5Qd, where Qd is the annual quantity demanded. While your fixed cossare high (due to the cost of specialized machines), our marginal cost for for a full treatment are "just" $600 per treatment.

1. If you set a single price to maximize profits what quantity will you supply eadch year?

(Guidance: the marginal reveunue (MR) function has the same y-axis intercept as teh inverse demand function, but twice the slope. Set MR equal to MC and solve for !.

2. What is the price for treatment? (Hint plug the quantity from 1 into the inverse demand function."

3If the treatment is priced at teh marginal cost to your company, how many treatments will be proved per year?

4What is the deadwieght loss due to monopoly power in this market?