Which of the Following Expenses Would Not Be Covered in a Basic

question 14

Multiple Choice

Which of the following expenses would not be covered in a basic group health plan?

• A)physician office visits
• B)physician charges for services provided in a hospital
• C)hospital charges for x rays and supplies
• D)rental of the operating room

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Definitions:

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance payments.

Losing Money

Losing money describes a situation where an individual or business expends more money than is received over a certain period, resulting in financial loss.

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total number of units produced.

Marginal Cost

The increase or decrease in total production cost when producing one additional unit of a good.