# ECO 605 Assignment 2.1: Maximizing Productivity

## ECO 605 Assignment 2.1: Maximizing Productivity

### Introduction

In this assignment, you will calculate various costs of a clinic and identify factors likely to increase or decrease those costs. You will calculate the clinic’s marginal cost (MC). To better understand how these costs for the clinic behave, you will translate the different average costs and marginal cost into graphical form.

### Assignment Guidelines

1. Define total fixed costs, total variable costs and total costs.
2. State the formulas for AFC, AVC, ATC, and MC.
3. Complete the table by calculating AFC, AVC, ATC, and MC.
4. List examples of the factors that would cause costs for the clinic to increase or decrease.
5. Present a graph of curves for TFC, TVC, and TC.
6. Present a graph of the curves for AFC, AVC, ATC, and MC.

### Submission

Submit your file using the following naming convention: Last name_First name_Assignment_2.2.

Submit your assignment and review full grading criteria on the Assignment 2.2: Production Costs page.

## Week 2: Healthcare Production and Costs

This week, the focus is on the healthcare provider. Healthcare providers need resources to deliver a treatment or procedure. The purchase of these resources represents costs for healthcare providers. We will examine the relationship between the output of healthcare providers and the costs incurred to produce these services.

# Assignment 2.2: Production Costs

Complete the following:

1. Define the terms total fixed costs, total variable costs, and total costs.
2. State the formulas for AFC, AVC, ATC, and MC.
3. Fill in the values of the following table:
 Patient  Visits Total Variable Costs Total Costs Total Fixed Costs Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 0 50 —- —— —— —– 1 70 120 2 110 160 3 160 210 4 250 300 5 370 420

1. List examples of the factors that would cause cost for the clinic to increase or decrease.
2. Use Excel to generate a graph of the cost curves for TFC, TVC, and TC. Provide an image of your graph here.

1. Use Excel to generate a separate graph of the AFC, AVC, ATC, and MC curves. Provide an image of your graph here.

Review a list of all items due this week in your course’s syllabus.

## Lesson 1: The Production Function

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This lesson will describe the production function for a good or service and will describe how a production function gives the relationship between inputs and outputs.

### Learning Outcomes

By the end of this lesson, you will be able to:

• Define the terms fixed input, variable input, and production function.
• Identify fixed and variable inputs in the medical field.
• Identify factors that shift a production function.
• Determine how a production function shows the relationship between inputs and outputs.

Before attempting to complete your learning activities for this week, review the following learning materials:

### Learning Materials

Read the following in your Economics of Health and Medical Care textbook:

Chapter 5, “Health Care Production and Costs” (pp. 71–77)

These pages provide additional references to the production function and other issues related to it.

Assignment Rubric
CriteriaRatingsPts
Responses
5 to >4 pts
Meets Expectations

Answers to all questions are correct. Graphs are all properly labeled and axes all properly identified. All graphs are properly drawn. (If applicable.)

4 to >2 pts
Nearly Meets Expectations

Answers to most questions are correct. Graphs are mainly labeled correctly and axes are usually properly identified. (If applicable.)

2 to >0 pts
Does Not Meet Expectations

Answers to most questions are incorrect. Graphs are not labeled or axes are not properly identified. Graphs are not drawn properly. (If applicable.)

/ 5 pts
Explanations
5 to >4 pts
Meets Expectations

Provides thorough explanation of rationales and skillfully applies course materials to develop conclusions. There is always a close and strong connection between the explanations provided and the material from the lessons.

4 to >2 pts
Nearly Meets Expectations

Provides adequate explanation of rationales, but conclusions could be supported more strongly using course materials. There is a connection between explanations and concepts from the lessons but this connection is not always strong or clear.

2 to >0 pts
Does Not Meet Expectations

Neither provides adequate explanation of rationales nor uses available resources to substantiate conclusions. There is no close connection between the explanations provided and the concepts given in the lessons.

/ 5 pts
Structure and Mechanics
5 to >4 pts
Meets Expectations

Contains one or two errors in grammar, spelling, and/or APA format.

4 to >2 pts
Nearly Meets Expectations

Contains several errors in grammar, spelling, and/or APA format.

2 to >0 pts
Does Not Meet Expectations

Contains many errors in grammar, spelling, and APA format.

/ 5 pts
Total Points: 0

APA Writing Checklist
Use this document as a checklist for each paper you will write throughout your GCU graduate program. Follow specific instructions indicated in the assignment and use this checklist to help ensure correct grammar and APA formatting. Refer to the APA resources available in the GCU Library and Student Success Center.
☐ APA paper template (located in the Student Success Center/Writing Center) is utilized for the correct format of the paper. APA style is applied, and format is correct throughout.
☐ The title page is present. APA format is applied correctly. There are no errors.
☐ The introduction is present. APA format is applied correctly. There are no errors.
☐ Topic is well defined.
☐ Strong thesis statement is included in the introduction of the paper.
☐ The thesis statement is consistently threaded throughout the paper and included in the conclusion.
☐ Paragraph development: Each paragraph has an introductory statement, two or three sentences as the body of the paragraph, and a transition sentence to facilitate the flow of information. The sections of the main body are organized to reflect the main points of the author. APA format is applied correctly. There are no errors.
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☐ Sources are completely and correctly documented on a References page, as appropriate to assignment and APA style, and format is free of error.
Scholarly Resources: Scholarly resources are written with a focus on a specific subject discipline and usually written by an expert in the same subject field. Scholarly resources are written for an academic audience.
Examples of Scholarly Resources include: Academic journals, books written by experts in a field, and formally published encyclopedias and dictionaries.
Peer-Reviewed Journals: Peer-reviewed journals are evaluated prior to publication by experts in the journal’s subject discipline. This process ensures that the articles published within the journal are academically rigorous and meet the required expectations of an article in that subject discipline.
Empirical Journal Article: This type of scholarly resource is a subset of scholarly articles that reports the original finding of an observational or experimental research study. Common aspects found within an empirical article include: literature review, methodology, results, and discussion.
Adapted from “Evaluating Resources: Defining Scholarly Resources,” located in Research Guides in the GCU Library.
☐ The writer is clearly in command of standard, written, academic English. Utilize writing resources such as Grammarly, LopesWrite report, and ThinkingStorm to check your writing.