QUESTION 20

Ahospital provides emergency-room medical care for local residents. Suppose the hospital currently provides this care for 15,000 patients per year at a total cost of $

60,000,000. If the hospital expands, it can provide emergency-room medical care for 20,000 patients per year at a total cost of $

50,000,000.

If the hospital expands, will it be experiencing economies of scale, diseconomies of scale, or constant returns to scale?

If the hospital expands, it will be experiencing ____________