What does healthcare (hospital) organization produce (it can be a good or service)? What are the production costs for a hospital organization?

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What does healthcare (hospital) organization produce (it can be a good or service)? What are the production costs for a hospital organization?

What does healthcare (hospital) organization produce (it can be a good or service)? What are the production costs for a hospital organization? What are the fixed costs? The variable costs? What economic costs does a hospital likely overlook when computing its “profits”? Explain the profit maximizing condition in terms of a hospital. If you work for a “nonprofit” firm, what do you think is the appropriate level of output for your hospital? Why?

 

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