The above figure supports all of the following statements regarding health care EXCEPT
A) the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded.
B) if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously.
C) due to third party payments, patients demand a higher quantity of health care services per year.
D) the lower the deductible, the greater is the quantity demanded of health care services per year.
A
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Answer the following statement(s) true (T) or false (F)
1. In the long run, a competitive firm that experiences decreasing returns must earn negative profits after all factor shares are paid out. 2. Factors that are supplied relatively inelastically earn more rents than those supplied more elastically. 3. Both the competitive firm's demand curve for labor and the monopoly firm's demand curve for labor always slope downwards. 4. When production is subject to increasing returns to scale profit will be positive. 5. If demand for output rises, producers' surplus increases more for factors with elastic supply curves than for other factors.
Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them. ?
Answer the following statement true (T) or false (F)
The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output
A) is $0.10. B) is $10. C) is $9,000. D) cannot be determined without more information.
The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly
a. True b. False Indicate whether the statement is true or false