_______ occur when the cost of producing a medical service decreases as the quantity produced increases.

Question

Quizplus · Accepted Answer

Economies of scale occur when the cost per unit of a product or service decreases as the volume produced increases. This is due to the spreading of fixed costs, such as equipment and labor, over a greater number of units. In the case of medical services, as the quantity produced increases, the fixed costs associated with running a medical facility or practice can be spread over a greater number of patients and services, resulting in lower costs per service.

_______ Occur When the Cost of Producing a Medical Service