Figure 2-5 A, The hypothetical relationship between inputs to a productive process and the benefits derived describes a production function. As investment continues, the net benefit, segment ΔBn , progressively decreases and then becomes negative, illustrating the law of diminishing returns. B, Rationalizing rather than rationing health-care technology achieves maximal benefit at "the top of the curve," a level of investment associated with the optimal investment. (A is reproduced from Orkin[45] ; B is modified from Orkin[45] and Reinhardt.[46] )


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