Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then:
A. Reducing the amount of health-care services they provide
B. Passing the uncovered costs on to patients with private health insurance
C. Denying services to many Medicare and Medicaid patients
D. Filing for bankruptcy regularly
B. Passing the uncovered costs on to patients with private health insurance
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A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the
A) marginal revenue product of labor. B) marginal factor cost of labor. C) price of the extra output produced. D) average physical product of labor.
How should firms in perfectly competitive markets decide how much to? produce? Perfectly competitive firms should produce the quantity where
What are the five variables that will shift the demand curve?
What will be an ideal response?
Monopolistically competitive firms ________ because in long-run equilibrium price is ________ marginal cost.
A. prevent the efficient use of resources; greater than B. use resources efficiently; greater than C. use resources efficiently; equal to D. prevent the efficient use of resources; less than