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Slide Presentation from the AHRQ 2007 Annual Conference

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Econ 101

Text Description is below the image.
  • No uniquely efficient input mix
    • Depends on prices, output quantity
  • We should not care about input mix
    • Cost is what matters
    • Non-Health example:
      • Production in the US is more efficient than in China in terms of resource use, but Chinese products are cheaper. Who should we buy from?

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