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university-health economics

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Suppose hospital (A) has 500 patients/day and average cost of operation is $1500/day. Hospital (B) has 300 patients/day and average cost of $600/day. Hospital (C) has 100 patients/day and average cost of $600/day. What can you say about the most efficient size of hospital? Explain the reasons for this choice of hospital size. Illustrate your answer with a graph.

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