When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services
A) is less than the marginal benefit consumers receive from them.
B) is equal to the marginal benefit consumers receive from them.
C) is greater than the marginal benefit consumers receive from them.
D) is zero due to the insurance payments.
C
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Pollution is an example of a
A) negative externality B) positive externality. C) private cost. D) public good.
The law of supply states that
a. as prices increase, quantity supplied decreases. b. price changes are always in the same direction as supply changes. c. a change in price causes a change in supply. d. price and quantity supplied are positively or directly related.
Rent-seeking increases monopoly profit but it also increases the deadweight loss from monopoly practices
Indicate whether the statement is true or false
Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,200 to kids attending the prom
The total contribution to GDP of this series of transactions is: A. $1,200. B. $500. C. $2,300. D. $1,100.