If a Hospital Is Experiencing Economies of Scale

question 4

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:

Incarceration

The act of detaining someone in prison or another facility as a punishment for a crime.

PSD Area

A designated zone under the Prevention of Significant Deterioration program, aimed at controlling air pollution while allowing for economic growth.

Pollutants

Substances introduced into the environment that cause harm or discomfort to organisms, including chemicals, waste materials, and toxic gases.

Clean-up Cost Liability

The legal responsibility for the expenses associated with the removal and remediation of environmental pollution.