Substitution of inputs
One chief concern among healthcare administrators and executives is how to minimize costs by managing inputs to the production of patient services. ;
Appraise: “When the prices of inputs change, healthcare providers may substitute away from one input toward another.” ;
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;Your appraisal must begin by asserting whether the statement is true or false. Use appropriate graphs to enhance your appraisals, making sure to clearly label everything. ;
In your appraisal, compare two healthcare providers, one that has a great deal of flexibility in substituting inputs for one another, and another that lacks that flexibility.