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Hospital A: 250 ICU beds - average unit cost is $300 a bed a day. Hospital B: 500 ICU beds - average unit cost is
Hospital A: 250 ICU beds - average unit cost is $300 a bed a day. Hospital B: 500 ICU beds - average unit cost is $200 a bed a day. Hospital C: 750 ICU beds - average unit cost is $290 a bed day. When the number of beds increases, the fixed costs will be reduced. Thus the average cost will decrease when the number of beds increases. However, the average unit cost of Hospital C is much higher than B because of _______ Group of answer choices Economies of scale Economies of scope Diseconomies of scale Diseconomies of scope Diseconomies of scan
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