Question

According to the quantity-quality model of hospital behavior:________.

a. Hospitals will choose a quantity and quality combination that maximizes the hospitals profit
b. Hospitals will choose a quantity and quality combination that maximizes the utility of the administrator subject to the hospital residual

Answer 1

a. Hospitals will choose a quantity and quality combination that maximizes the hospitals profit

Step-by-step explanation:

As per the quantity and quality model fo the hostipal behavior is focused on the selection of the quantity and quantity combination that maximize the profit of the hospitals

Therefore as per the given situation, the a option is correct as for every type of organization the main motive is to maximize the profit

So the option a is right

And, the rest of the options are wrong