Question

why does the cost per tests in a lab go down when the number of tests go up?

Answer 1

In various research found when the demand of any thing is increase the cost will automatically decrease.Same, In the laboratory,when the number of the test is increase the cost of the per test is decrease.There are three basic reason like:

1. More revenue - By lowering the price of the per test will increase the revenue of the lab.because various new customer will attract by seeing the lower price.
2. Raw material - Many times when the demand of test is increase.The lab owner have to order the raw material or chemicals in bulk.which will cost him less as compare to another day.so, it will helpful to decrease the lab test cost.
3. Motivate the customer - Because the number of test is Increase the Waiting line is also increase.So, to motivate the customer to not to go another lab.Sometimes, cost will Decrease for the test.

So,In the laboratory when the number of test is increase the hospital management will automatically Decrease the some cost.which will helpful for them to earn more money as well as motivate the patient to wait in the line.