Question

The national nursing home occupancy rate of 81% suggests:

Group of answer choices

a. shortages of nursing home availability.

b. ample supply of local nursing homes.

c. ample aggregate supply of nursing homes.

d. potential large-scale price increases for nursing home care.

In the short run, hospitals will remain open as long as:

Group of answer choices

a. marginal revenues will cover marginal costs.

b. they are covering average costs.

c. they are covering fixed costs.

d. Answers (b) and (c) are correct.

Home health care is less expensive than hospital or nursing home care because:

Group of answer choices

a. caregivers' time costs nothing because they are not working outside the home.

b. caregivers only need be paid minimum wage.

c. the home care is much less capital intensive than care in institutions.

d. Answers (b) and (c) are correct.

Answer 1

1. The national nursing home occupancy rate of 81% suggests ample aggregate supply of nursing homes. Hence, option(C) is correct.

2. In the short run , hospitals will remain open as long marginal revenue will cover marginal costs , as MC>MR , then hospitals will close. Hence, option(A) is correct.

3. Home health care is less expensive than hospital or nursing home care because the home care is much less capital intensive than care in institutions. Hence, option(C) is correct.