If a Hospital Is Experiencing Economies of Scale

question 2

Multiple Choice

If a hospital is experiencing economies of scale,

• A)Its average cost curve is positively sloped as output increases.
• B)Its average cost curve is negatively sloped as output increases.
• C)It should reduce its output level to lower costs.
• D)Quality is falling as output is rising.
• E)Both b and c are true.

---

Definitions:

Elementary School

An institution for providing child education that comes after preschool and before secondary school, typically for children from the ages of 5 to 11.

Advanced College

An institution of higher education offering undergraduate and postgraduate studies beyond the standard college level.

High School

An educational institution that provides secondary education, typically for students aged 14 to 18, as a bridge between primary education and higher education or the workforce.

Correlation Coefficient

A statistical measure that describes the extent to which two variables are related, indicating both the strength and direction of the relationship.