A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nursing homes forshort-term stays by patients that require therapy or care upon leaving hospitals. Assume the corporation is considering expanding the number of"beds" it offers at its nursing homes.

Given the changes toMedicare, if the marginal benefit of offering an additional bed is $7,000 and the marginal cost is $8,000 perbed, then the corporation should or should not offer additional beds.