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Many Hospitals Break Out the Payment for a Radiologist's Service

Question 13

Multiple Choice

Many hospitals break out the payment for a radiologist's service into two components: the radiologist's time interpreting x-rays and the hospital's charge for producing the x-rays. After doing so, they decide to contract out the service of producing the x-rays. This is most likely because


A) economies of scale exist in x-ray production.
B) diseconomies of scale exist in x-ray production.
C) cost shifting is possible.
D) radiologists historically have been able to price discriminate.
E) the hospital is more efficient at producing x-rays.

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