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

Question

Quizplus · Accepted Answer

The rational consumer would choose not to stay in the hospital for that additional day if the increasing marginal cost of another day spent in the hospital exceeds the decreasing marginal benefit. This is because the incremental cost of staying in the hospital for an additional day is increasingly higher than the benefits gained from doing so. Therefore, the consumer would choose to forego staying in the hospital for any additional day, unless the marginal benefit exceeds the marginal cost.

If the (Steadily Increasing)marginal Cost of Another Day Spent in the Hospital