If the market price for a competitive firm's output doubles then
A) the profit maximizing output will double
B) the marginal revenue doubles
C) at the new profit maximizing output, price has increased more than marginal cost
D) at the new profit maximizing output, price has risen more than marginal revenue
E) competitive firms will earn an economic profit in the long-run.
B
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An insurance company is likely to attract customers who want to purchase health insurance because they know better than the company that they are more likely to file a claim on a policy. This situation describes
A) adverse selection. B) asymmetric information. C) moral hazard. D) a premium death spiral.
Assume the average annual CPI values for 2015 and 2016 were 207.3 and 215.3, respectively. What was the percent increase in the CPI between these two years?
A) 3.86 B) 0.96 C) 8.0 D) 1.04
Cost-effectiveness considerations are more formally integrated into health policy making in
a. the UK b. Australia c. Europe d. Canada e. b, c, and d are correct
Monopolies, whose market position is based on exclusive access to resources, eventually lose their monopoly power when there is
a. increasing brand loyalty on the part of consumers b. an expiration in their patents c. a development of new technologies d. exclusive access to resources e. a negative cross elasticity with other goods in the market