Question: N2 1. Discussion Question #4 in Chapter 6: Given the cost function and economies of scale and scope information reviewed in this chapter, does a

N2

1. Discussion Question #4 in Chapter 6: Given the cost function and economies of scale and scope information reviewed in this chapter, does a policy encouraging large, centralized hospitals seem wise? Will market forces tend to reward centralization of hospital services? 2. Discussion Question #7 in Chapter 6: Contrast technical and allocative efficiency. How can technical and allocative inefficiency in health care firms affect patient welfare?

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