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Yes, hospitals are very likely to accept the super-competitive bid of $13,900 per case. This is because their actual costs are less than what they
Yes, hospitals are very likely to accept the super-competitive bid of $13,900 per case. This is because their actual costs are less than what they are being offered. If the hospital does not accept the bid, their accounting profits would not fall, but their economic profits would fall, since their opportunity cost (of not accepting the offer) will increase
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