Health insurance companies often charge high premiums because ________
A) they expect to attract high-risk individuals
B) they expect to attract risk-averse individuals
C) they expect to attract low-income individuals
D) they expect to attract risk-neutral individuals
A
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Answer the following statements true (T) or false (F)
1. Under perfect competition, each firm can sell its entire supply at the market price. 2. The output level that yields maximum profit under perfect competition is where MR equals MC. 3. Under conditions of perfect competition, profits exist whenever AR is above AVC at equilibrium output. 4. On a graph of average cost curves, the space between ATC and AVC represents AFC. 5. Under conditions of perfect competition, if MR is below ATC at equilibrium output, the firm is suffering a loss.
The ability-to-pay philosophy of taxation argues for a progressive form of taxation
a. True b. False Indicate whether the statement is true or false
In the open-economy macroeconomic model, if investment demand decreases, then
a. the supply of dollars in the market for foreign-currency exchange shifts left. b. the supply of dollars in the market for foreign-currency exchange shifts right. c. the demand for dollars in the market for foreign-currency exchange shifts left. d. the demand for dollars in the market for foreign-currency exchange shifts right.
A monopolist ________ when its marginal revenue is zero.
A. maximizes total revenue B. shuts down C. is efficient D. maximizes profit