A healthcare production describes the process of turning inputs into outputs wou

Question

A healthcare production describes the process of turning inputs into outputs would be useful to interpret the opportunity cost of obtaining more healthcare (in terms of all other goods that are given up) in society describes the tradeoff between combinations of outputs given a fixed set of resources is the same as a production possibilities curve Consider that a hospital administrator in charge of hiring employees and purchasing equipment, such as diagnostic hardware and computers. He is surprised to realize that after a short period of time, hiring additional surgical assistants in the past year is increasing output by less and less. According to the short-run production process, he should consider the law of increasing returns to labor building a new wing to the hospital firing a few people purchasing complementary equipment After reviewing the various medical programs that are being offered to patients in the city's Medical Group Inc., a large conglomerate of healthcare companies, management makes the decision to allocate resources to the programs with the (choose the best answer): smallest overall level of output largest overall level of output greatest marginal change smallest marginal change

Explanation / Answer

A healthcare or for that matter any other production function explains the relationship between inputs and outputs. The production function explains the process of turning inputs into outputs.

For a given short run period more and more application of factors such as surgical assistant would meand that the firm is experiencing diminidhing returns to a factor, which is a part of the Law of returns to a factor.

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