If the (Steadily Increasing)marginal Cost of Another Day Spent in the Hospital

question 113

Multiple Choice

If the (steadily increasing) marginal cost of another day spent in the hospital exceeds the (steadily decreasing) marginal benefit of an additional day spent in the hospital, the rational consumer of health care services would be predicted to

• A)choose not to stay in the hospital for that additional day.
• B)stay in the hospital for at least that additional day.
• C)demand a private hospital room.
• D)regret having ever entered that hospital.

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Definitions:

Equity

Fairness or justice in the way people are treated within the economy, often in terms of the distribution of wealth.

Efficient Share

The optimal allocation or distribution of resources and goods in a way that maximizes productivity and utility without waste.

Efficiently Used

Utilized in a manner that maximizes productivity or effectiveness while minimizing waste or unnecessary expenditure of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.