When medical fee schedules are negotiated by two monopolists—one representing patients and one representing providers—the equilibrium medical fees will
a. be greater than fees determined in a competitive market.
b. be less than fees determined in a competitive market.
c. be greater than fees determined by provider groups alone.
d. be less than fees determined by patient groups alone.
e. depend on the relative bargaining strengths of the two groups negotiating the fee schedule.
E
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Which of the following is the best example of a tariff? a. a tax placed on all small cars sold in the domestic market
b. a limit imposed on the number of small cars that can be imported from a foreign country. c. a subsidy from the U.S. government to domestic manufacturers of small cars so they can compete more effectively with foreign producers of small cars. d. a $100-per-car fee imposed on all small cars imported.
If there is a natural disaster, the long-run aggregate-supply curve shifts
a) upward. b) left. c) right. d) not at all but instead remains constant.
A decrease in the demand for recreational fishing boats might be caused by an increase in the:
A. income of sports fishers. B. price of outboard motors. C. size and number of fish available. D. price of sailing boats.
An industry is expected to expand if firms in the industry are earning positive:
A. Normal profits B. Economic profits C. Accounting profits D. Total revenues