What is special about healthcare that makes it a good provided by the government?
What will be an ideal response?
The government provides healthcare services because the marginal social benefit of healthcare exceeds the marginal benefit perceived by its consumers, Consumers underestimate the benefit of healthcare because they underestimate the health risks they face. They also underestimate their future needs for healthcare. And some people cannot afford the healthcare they need. For these reasons the majority of voters want healthcare to be available on need rather than on the ability and willingness to pay
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Suppose a paper mill earns $1,000,000 in profits when it pollutes a river, and it can abate pollution at a cost of $A. The effects of the pollution are confined to a single farmer who earns $400,000 if the water he uses from the river is clean and $300,000 if it's polluted. If _______, then abatement would be efficient.
A. A < 300,000 B. A > 100,000 C. A < 100,000 D. A < 400,000
A monopolist that maximizes total revenue earns maximum economic profit
a. True b. False Indicate whether the statement is true or false
A limitation one faces when shopping for clothes is the amount of time available to shop
a. True b. False Indicate whether the statement is true or false
A monopolistically competitive firm faces a relatively-elastic demand curve as compared to a monopolist firm because of the:
a. presence of a large number of buyers and barriers to entry. b. presence of a large number of firms and easy entry into the market. c. production of perfectly homogeneous products. d. production of unique products and the presence of barriers to entry. e. production of goods that are perfect complements of each other.