5 Explain why the amount of each output produced by the composite hospital obtained by averaging hospitals

Question:

5 Explain why the amount of each output produced by the composite hospital obtained by averaging hospitals 1 and 3

(with the absolute value of the dual prices as weights) is at least as large as the amount of the corresponding output produced by hospital 2. (Hint: Price out variables t1, t2, and t3, and use the fact that the coefficient of these variables in row 0 of the optimal tableau must equal 0.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: