If the (steadily decreasing)marginal benefit of another day spent in the hospital exceeds the (steadily increasing)marginal cost of an additional day spent in the hospital, the rational consumer of hospital services would be predicted to

Question

Quizplus · Accepted Answer

The rational consumer would choose to stay in the hospital for at least that additional day if the marginal benefit of another day exceeds the marginal cost. This means that the consumer perceives that the additional day will provide more benefit than cost, so it would be rational to stay. Checking out immediately or demanding a refund would not make sense if the benefit of staying exceeds the cost. Complaining about the hospital food is unrelated to the decision of whether to stay an additional day or not.

If the (Steadily Decreasing)marginal Benefit of Another Day Spent in the Hospital