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Answer to Question #49625 in Economics of Enterprise for ObiJuru

Question #49625
Are large hospitals expensive because they suffer from diseconomies of scale, or because they admit the most difficult-to-treat patients?
Expert's answer
Large hospitals have bug part of fixed costs that should be absorbed by big amount of patients. These fixed costs are not always fully covered by revenue that hospitals receive. Because amount of patients are not in proportion to fixed costs.

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