If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the ____ of all firms is identical
a. average total cost
b. average profit
c. marginal profit
d. marginal cost
e. marginal revenue
d
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Based on the current rate of growth, health care spending as a percentage of GDP through Medicare, Medicaid, and other U.S. government programs is expected to
A) double over the next 40 years. B) stabilize within the next 20 years. C) slow down during this decade. D) account for a majority of spending as a percentage of GDP within 5 years.
According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital
Indicate whether the statement is true or false
If governments provide free healthcare services,
a. this illustrates that governments can provide healthcare more economically than private firms. b. output and consumption of other goods will not be sacrificed. c. resources with alternative uses are allocated to healthcare and there is an opportunity cost of these resources. d. the opportunity cost of the resources used to supply healthcare is zero.
The price elasticity of supply along a typical supply curve is
a. constant. b. equal to zero. c. higher at low levels of quantity supplied and lower at high levels of quantity supplied. d. lower at low levels of quantity supplied and higher at high levels of quantity supplied.