Question

7. According to the _______, a nonprofit hospital provides the same quantity of health care goods that a monopolist provide.

a. quantity maximization model

b. quality maximization model

c. managerial expense preference model

d. quality/quantity maximization model

e. utility maximization model

Answer 1

Option D

• According to the quality/quantity maximization model a non profit hospital provides the same quality of health care goods that a monopolist provide.
• According to the output maximizing model,a non profit health care organization must provide health care of average quantity and quality.
• They aim at maximizing both the quantity and quality moving away from profit.
• That is these non profit institutions maximize quantity and quality with a zero profit objective.
• This model deviates from the profit maximization models.

answered by: anonymous