DQ 7-2

In the health care setting, the position of the long-run average cost curve is determined by a set of circumstances that includes the price of all inputs, quality, and patient case mix. Provide an example from the health care setting of a change that will cause the long-run average cost curve to shift down. Justify the validity of the example.

In your response to peers, discuss whether you agree or disagree with the examples provided by your peers.