If a hospital is cost-minimizing, then the marginal productivity per dollar spent on physicians must be equal to the marginal productivity per dollar spent on nurses.

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When a hospital is cost-minimizing, it aims to achieve the highest level of output at the lowest possible cost. This means that every input, whether it is spent on physicians or nurses, must be allocated in a way that maximizes their marginal productivity. Therefore, the marginal productivity per dollar spent on physicians has to be equal to the marginal productivity per dollar spent on nurses in order to achieve the cost-minimizing objective.

If a Hospital Is Cost-Minimizing, Then the Marginal Productivity Per