Alarge corporation that runs nursing homes estimates that changes to medicare will result in lower payments by medicare to nursing homes for short-term stays by patients that require therapy or care upon leaving hospitals. assume the corporation is considering expanding the number of "beds" it offers at its nursing homes. given the changes to medicare, if the marginal benefit of offering an additional bed is $5,000 and the marginal cost is $6,000 per bed, then the corporation (should / should not) offer additional beds.
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