What is the relative importance of demand and supply factors in explaining rising health care costs?
What will be an ideal response?
The most likely explanations for the rise in health care costs are (1) the use of new medical technology, (2) medical ethics, (3) fee-for-service payment, and (4) a third-party system of insurance payments with few incentives to control costs. Only a relatively minor portion of the increase in health care costs can be attributed to increasing incomes, the aging of the population, or defensive medicine.
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What do you mean by Coase theorem?
What will be an ideal response?
If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm. B. the firm's production process exhibits economies of scale. C. the firm's marginal revenue from selling an additional unit of output is less than price. D. it is a perfectly competitive firm.
If marginal cost is rising in a competitive firm's short-run production process and its average variable cost is falling as output is increased, then which statement is true?
a. Marginal cost is above average variable cost. b. Marginal cost is below average fixed cost. c. Marginal cost is below average variable cost. d. Average fixed cost is constant.
If goods A and B are perfect substitutes, then the marginal rate of substitution of good A for good B is constant
a. True b. False Indicate whether the statement is true or false