Comparing the costs of producing inpatient services

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Suppose that you are interested in comparing the costs of producing inpatient services at Saving Grace Hospital with those at ACME Hospital Further suppose that the two hospitals annual admit about 24,000 and 32,000 patients, respectively at average short-run total costs per admission of roughly 11,000 and 12,000. A. Why may these average STC figures not represent the economic cost of providing inpatient services at these two hospitals? Explain fully. B. Using cost theory as presented in the text, identify and fully discuss four other factors that might

Reference no: EM131196082

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