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Diminishing returns and decreasing returns
Describe what is the difference between diminishing returns and decreasing returns to scale and what kind of returns to scale are possible - observed in healthcare organization? Why? What is the relationship between returns to scale and cost curves? Can you assess the shape of the long-run average cost curve for a hospital organization? You do not need to estimate the cost function, merely, on the basis of your knowledge of healthcare, what do you think the curve looks like and why?
Explain You may provide additional references but references do not replace the articles that relate to your key term.
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