Case Study:The number of patients at Harbordale Hospital increased from 120 to 144 from Monday to Tuesday. The hospital's costs increased $720,000 to $722,000 as temporary nurses were called in to deal with the heavy patient load.

1.Explain in detail the changes Harbordale Hospital is experiencing.

2.Which is more costly, the short-run adjustment between Monday and Tuesday or a long-run adjustment?

Part 2: Long Term Care

1.How much is the average cost per day of a nursing home day?

2.On a typical day in the United States, are there more patients in hospitals or nursing homes?

3.Which type of care is growing more rapidly, hospital or long-term care?

4.What is the most rapidly growing form of LTC?