Consumers usually pay less than the total cost of medical treatment because
A) a third party, usually an insurance company, often pays most of the bill.
B) the federal government pays for most medical procedures.
C) competition forces doctors and hospitals to charge prices that do not cover their costs.
D) a third party, usually an employer, often pays most of the bill.
Answer: A
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If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do), then states would maximize their profits on plate sales at the point on a linear demand curve where
a. demand is inelastic. b. demand is elastic. c. demand is unit elastic. d. the demand curve crosses the horizontal axis.
When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,
a. consumers have a strong incentive to search out those firms offering them the best deal. b. private producers of such goods will have little incentive to control costs and provide them at low prices. c. goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs. d. the invisible hand will direct consumers and producers toward an efficient level of output.
Full-time homemakers and retirees are classified in the BLS data as
A. part of the labor force. B. not in the labor force. C. employed. D. unemployed.
What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?
What will be an ideal response?