The cost of health care is increasing at a rate higher than inflation. One popular suggestion...

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Economics

The cost of health care is increasing at a rate higher thaninflation. One popular suggestion by policy makers to lower therate of this cost increase is to (i) rely more heavily on nursepractitioners instead of primary care doctors for certain medicaltreatments and (ii) to lower the average time patients stay in thehospital and to take care of them at home as soon as possible (inmedical lingo this is substituting \"outpatient care\" for \"inpatientcare\"). What does this imply about the \"production function\" ofhealth care as a function of labor of doctors and nurses?

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As per the information Healthcare production function is determined by the function of labor of doctors and nurses In any given time and location there is a fixed amount of doctors and nurses available per personSo in short term we can take the production function as fixedvertical line on the x axis if production function is plotted on yaxis and quantity of labour supplied in healthcare on xaxis This entails from the fact that doctors have a limited time in which they can attend patients in hospital or their clinicAt the same time there is surge in demand of See Answer

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