If the (steadily increasing) marginal cost of another day spent in the hospital exceeds the (steadily decreasing) marginal benefit of an additional day spent in the hospital, the rational consumer of health care services would be predicted to

A. regret having ever entered that hospital.
B. choose not to stay in the hospital for that additional day.
C. stay in the hospital for at least that additional day.
D. demand a private hospital room.


Answer: B

Economics

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Refer to Figure 15-15. Why won't regulators require that Erickson Power produce the economically efficient output level?

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Economics

Different measurements of elasticity include:

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Economics

Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have data for price (P), MR, ATC, MC, AVC, at the quantity of 1,000 breads a day. Among the other relationships you consider is (P – ATC) which measures the firm's

a. total profit b. profit per unit of output c. marginal profit d. total revenue e. average variable cost

Economics