5 Written questions
5 Matching questions
- The fact that most medical care purchases are financed through insurance:
- In answering the next question(s), assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.
For a purely competitive firm, total revenue graphs as a:
- Josh will receive a salary of $300,000 next year. According to prospect theory:
- Because of "mental accounting:"
- Allocative efficiency is achieved when the production of a good occurs where:
- a P = MC.
- b straight, upsloping line.
- c people isolate purchases and sometimes make irrational decisions.
- d increases the amount of health care consumed by reducing the price of additional units of care.
- e Josh will only be happy with that salary if his cost of living has not increased.
5 Multiple choice questions
- P > ATC.
- creative destruction.
- diminishing marginal utility.
- prices for their output temporarily fall below their average variable costs of production.
5 True/False questions
The MR = MC rule applies: → to firms in all types of industries.
Anchoring → demand is elastic at high prices.
The primary force encouraging the entry of new firms into a purely competitive industry is: → buyer responsiveness to price changes.
A supply curve that is a vertical straight line indicates that: → both allocative efficiency and productive efficiency are being achieved.
In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies? → increases the amount of health care consumed by reducing the price of additional units of care.