Question

Health status is maximized when:

           a. The marginal products of health care inputs are maximized

           b. The average products of health care inputs are maximized.

           c. The marginal products equal the average products

           d. The marginal products of health care inputs equal 0

           e. None of the above

Answer 1

The marginal product of health care inputs can be defined additional health care benefit received by using an additional health inputs. Total Health is sum of all health benefit receive by using the all the health care inputs. When the marginal products of health care inputs equal 0, then total product of health care will be maximum.

Hence it can be said that health status is maximized when the marginal products of health care inputs equal 0.

Hence option d is the correct answer.