A Healthcare Facility Administrator Considers the Principle of Utility When

question 13

Multiple Choice

A healthcare facility administrator considers the principle of utility when making decisions that affect the employees of the facility. Which of the following describes this principle?

• A) It is based upon absolute truths applied in other situations.
• B) It brings about positive results when generalized to a wide variety of situations.
• C) It is the decision that is desired by the majority.
• D) It is the decision that has the fewest adverse effects on the facility as a whole.

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Definitions:

Competitive Equilibrium

is a condition in a market where supply equals demand, with prices becoming stable at this point.

Capital Input

The resources used in the production process, including buildings, machinery, and equipment.

Labor Input

The total hours of work or number of workers employed in the production of goods and services.

MRTS

The Marginal Rate of Technical Substitution; the rate at which one input can be substituted for another input in the production process, while keeping the output level constant.