Question

In an effort to maintain acceptable levels of oral health, mobile dental clinics visit Australian schools each year to examine and treat children aged 7 to 9 inclusive. The regulator has identified two output and three input variables that can be used to assess the efficiency of these mobile units. The outputs are the number of treatments and the number of examinations, while the inputs are the number of dental therapist days, the number of dental assistant days, and units of materials. Data for five mobile units are given in Table 2 . Assume variable-returns-to-scale (VRS) and use Excel QM and material learnt in the lectures and tutorials to answer the following questions: (b) Suppose that input mixes are fixed. How much of each input should have been used by Unit B if it was to have performed the same number of treatments and conducted the same number of examinations and be regarded as technically efficient (round your answers to one decimal place)?

Answer 1

To determine the input mix for Unit B to be technically efficient, calculate the input ratios and compare them to the ratios of the other units.

Step-by-step explanation:

To determine how much of each input should have been used by Unit B to perform the same number of treatments and examinations and be regarded as technically efficient, we need to calculate the input mix. Since the input mixes are fixed, we can compare the ratios of the inputs used by each mobile unit. The input ratios for Unit B should be the same as the input ratios of the other units that performed the same number of treatments and examinations. Let's calculate the input ratios for Unit B:

Input Ratio for Unit B: Number of Dental Therapist Days / Number of Dental Assistant Days / Units of Materials

Unit B: 4.0 / 3.0 / 5.0