Saskatchewan had more hospitals than Ontario, despite having one-tenth the population. The Saskatchewan government closed many of these hospitals in spite of widespread local protests. Which one of the following arguments is true?

Question

Quizplus · Accepted Answer

The Saskatchewan government closed many hospitals despite widespread local protests, indicating that they believed the marginal benefit from these hospitals was less than their marginal cost. Option A is not a valid argument as it ignores the concept of opportunity cost. Option B is flawed as having more hospitals than another region does not necessarily mean there are too many hospitals. Option C is correct in terms of marginal analysis, but it is not clear if the government actually determined the marginal benefit and cost of individual hospitals. Option E is incorrect because communities would still bear the costs of losing access to healthcare services.

Saskatchewan Had More Hospitals Than Ontario, Despite Having One-Tenth the Population