Price floors keep the price _____ equilibrium price; price ceilings keep price _____ equilibrium price.
Fill in the blank(s) with the appropriate word(s).
above; below
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Suppose a heath care provider wants to ensure that its family doctors are offering patients referrals to specialists when appropriate. Offering referrals makes the doctors' work longer as they need to complete considerable paper work. Because the managers of the health care provider cannot monitor doctors during patient visits, the managers require that each doctor refers at least 40 percent of
their patients to a specialist each month or face a fine. If less than 40 percent of the patients actually need a referral to a specialist, this policy will result in all of the following occurring except which one? A) Patients who need to see a specialist and might not have otherwise received a referral are now likely to receive a referral. B) Doctors' time will be wasted completing unnecessary paper work. C) Patients who do not need to see a specialist will be referred to one. D) The doctor turnover rate at this health care provider should decrease.
Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True b. False Indicate whether the statement is true or false
A perfectly competitive firm's total revenue curve
a. is a horizontal line b. is a vertical line c. is constant d. has a negative slope e. has a constant positive slope
The marginal cost of a good is: a. always smaller than the average cost of the good. b. the cost of producing an additional unit of the good. c. the cost of producing all the units of a the good
d. always greater than the price of the good.