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When Treating a Typical Inpatient in a Given DRG,prospective Payment

question 61

True/False

When treating a typical inpatient in a given DRG,prospective payment rates are set at a level intended to cover operating costs.


Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

Total Revenue

The total income generated by a firm or economy from its sale of goods and services, calculated before any expenses are subtracted.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit, often involving analysis of marginal costs and marginal revenues.

Shutdown

The short-term decision by a firm to cease production due to operating at a loss, where total revenue is not covering variable costs.

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