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Hospitals in Montgomery are profit-maximizing, perfectly competitive firms. Hospitals in Birmingham, on the other hand, are run by nonprofit charities that try to minimize the
Hospitals in Montgomery are profit-maximizing, perfectly competitive firms. Hospitals in Birmingham, on the other hand, are run by nonprofit charities that try to minimize the long-run average cost of treating patients. Hospitals in both cities have the same average and marginal cost.Will the Montgomery hospitals end up been bigger, equal or smaller in size?Explain your answer.
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