MHA 710 Ch. 5 & 7 Questions With
Verified Answers
Efficient x- xAnswer x- xproducing xthe xmost xvaluable xoutput xpossible, xgiven xthe xinputs xused.
Competitive xAdvantage x- xAnswer x- xoffering xproducts xof xthe xsame xquality xat xlower xcost xthan xrivals,
xoffering xproducts xhigher xquality xat xsame xcost xas xrivals, xor xoffering xproducts xthat xcustomers xare xwilling
xto xpay xmore xfor.
Output x- xAnswer x- xa xgood xor xservice xproduced xby xan xorganization
Input x- xAnswer x- xa xgood xor xservice xused xin xproduction
Opportunity xCost x- xAnswer x- xthe xvalue xof xwhat xone xcannot xdo xas xa xresult xof xmaking xa xchoice
Bundled xPayment x- xAnswer x- xpayment xof xa xfixed xamount xfor xan xepisode xof xcare. xThe xpayment xmight
xcover xjust xhospital xcare xor xmight xinclude xthe xphysician, xhospital, xand xrehab
Average xCost x- xAnswer x- xtotal xcost xdivided xby xtotal xoutput
Marginal xor xincremental xcost x- xAnswer x- xthe xcost xof xproducing xan xadditional xunit xof xoutput
Fixed xCost x- xAnswer x- xa xcost xthat xdoes xnot xvary xwhen xoutput xchanges
Variable xCost x- xAnswer x- xa xcost xthat xchanges xwhen xoutput xchanges
Economies xof xscale x- xAnswer x- xwhen xlarger xorganizations xhave xlower xaverage xcosts
Economies xof xscope x- xAnswer x- xwhen xmultiproduct xorganizations xhave xlower xaverage xcosts
Sunk xCost x- xAnswer x- xa xcost xthat xhas xbeen xincurred xand xcannot xbe xrecouped
AVC x(Average xVariable xCost) x- xAnswer x- xvariable xcosts xdivided xby xtotal xvolume
AFC x(Average xFixed xCost) x- xAnswer x- xfixed xcosts xdivided xby xtotal xvolume
Managers xshould xbe xseeking... x- xAnswer x- x-least xcostly xways xof xproducing
-ways xto xreduce xcosts
-eval xproduct xlines
Why xare xcosts xcomplex? x- xAnswer x- x-Costs xdepend xon xperspectives.
-Insurance xcomplicates xcalculations.
-Opportunity xcosts xmay xbe ximplicit.
-What xis xfixed xdepends xon xthe xtime xframe.
Verified Answers
Efficient x- xAnswer x- xproducing xthe xmost xvaluable xoutput xpossible, xgiven xthe xinputs xused.
Competitive xAdvantage x- xAnswer x- xoffering xproducts xof xthe xsame xquality xat xlower xcost xthan xrivals,
xoffering xproducts xhigher xquality xat xsame xcost xas xrivals, xor xoffering xproducts xthat xcustomers xare xwilling
xto xpay xmore xfor.
Output x- xAnswer x- xa xgood xor xservice xproduced xby xan xorganization
Input x- xAnswer x- xa xgood xor xservice xused xin xproduction
Opportunity xCost x- xAnswer x- xthe xvalue xof xwhat xone xcannot xdo xas xa xresult xof xmaking xa xchoice
Bundled xPayment x- xAnswer x- xpayment xof xa xfixed xamount xfor xan xepisode xof xcare. xThe xpayment xmight
xcover xjust xhospital xcare xor xmight xinclude xthe xphysician, xhospital, xand xrehab
Average xCost x- xAnswer x- xtotal xcost xdivided xby xtotal xoutput
Marginal xor xincremental xcost x- xAnswer x- xthe xcost xof xproducing xan xadditional xunit xof xoutput
Fixed xCost x- xAnswer x- xa xcost xthat xdoes xnot xvary xwhen xoutput xchanges
Variable xCost x- xAnswer x- xa xcost xthat xchanges xwhen xoutput xchanges
Economies xof xscale x- xAnswer x- xwhen xlarger xorganizations xhave xlower xaverage xcosts
Economies xof xscope x- xAnswer x- xwhen xmultiproduct xorganizations xhave xlower xaverage xcosts
Sunk xCost x- xAnswer x- xa xcost xthat xhas xbeen xincurred xand xcannot xbe xrecouped
AVC x(Average xVariable xCost) x- xAnswer x- xvariable xcosts xdivided xby xtotal xvolume
AFC x(Average xFixed xCost) x- xAnswer x- xfixed xcosts xdivided xby xtotal xvolume
Managers xshould xbe xseeking... x- xAnswer x- x-least xcostly xways xof xproducing
-ways xto xreduce xcosts
-eval xproduct xlines
Why xare xcosts xcomplex? x- xAnswer x- x-Costs xdepend xon xperspectives.
-Insurance xcomplicates xcalculations.
-Opportunity xcosts xmay xbe ximplicit.
-What xis xfixed xdepends xon xthe xtime xframe.
