In any business where fixed costs are high relative to


The concepts that I have problems understanding. can you please help me?

1. Most forms of health care are high fixed cost businesses

2. In any business where fixed costs are high relative to variable costs, the profit margin on marginal revenue is high, so volume (number of patients or number of procedures) is a major determinant of profitability.

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Finance Basics: In any business where fixed costs are high relative to
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