What happens to the price and quantity sold of a drug when its patent runs out? (i) The price will fall. (ii) The quantity sold will fall. (iii) The marginal cost of producing the drug will rise
a. (i) only
b. (i) and (ii) only
c. (ii) and (iii) only
d. (i), (ii), and (iii)
a
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The principle that "as one input increases while the other inputs are held fixed, output increases at a decreasing rate" is known as the
A) marginal principle. B) principle of diminishing returns. C) principle of opportunity cost. D) spillover principle.
Consumption expenditures do not include household purchases of
A) medical care. B) durable goods. C) new houses. D) education.
In contrast with perfect competition, a monopolist:
a. may have economic profits in the long run. b. earns zero economic profits in the long run. c. produces where MR > MC, and a perfectly competitively firm produces where P = MC. d. produces more at a lower price.
The impact of technological change in the health-care area has been to
A. increase longevity but decrease quality of life. B. decrease the monetary costs of health care while decreasing the quality of health care. C. increase both the quality of health care and the monetary costs of health care. D. increase the monetary costs of health care and decrease the quality of health care.