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Politics : A US National Health Care System?
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To: Lane3 who wrote (7365)7/6/2009 3:58:17 PM
From: TimF  Read Replies (1) of 42652
 
I don't see how administrative costs would ever be a function of the size of the transaction

Administrative costs often get measured as a percentage of total costs.

The larger transaction's administrative costs may be equal in terms of dollars. They might be slightly more, but if so the increase won't be likely to be as large as the increase in the size of the transaction.

So if you have larger transactions, than all else being equal you will have lower administrative costs (as a percent of total costs).
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