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Assuming That a Hospital Seeks to Minimize Total Costs, What

Question 3

Multiple Choice

Assuming that a hospital seeks to minimize total costs, what should it do if the marginal productivity per dollar spent on nurses is less than the marginal productivity per dollar spent on physicians?


A) The hospital should utilize more nurses and fewer physicians.
B) The hospital should utilize fewer nurses and more physicians.
C) The hospital should utilize fewer nurses and fewer physicians.
D) The hospital should utilize more nurses and more physicians.
E) There is not enough information to determine the appropriate action.

Correct Answer:

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