Health care services, like many other goods and services, have diminishing marginal returns.

Question

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Diminishing marginal returns occur when increasing inputs leads to less proportional increases in output. In the case of healthcare services, adding more resources (such as doctors, hospitals, or medical equipment) may lead to increased health outcomes at first, but eventually, the marginal benefit of each additional resource added may begin to decrease. This is due to factors such as capacity constraints, diminishing returns to specialization, and the law of diminishing marginal utility.

Health Care Services, Like Many Other Goods and Services, Have