The Situation in Which Patients Pay a Certain Portion of Healthcare

question 8

Multiple Choice

The situation in which patients pay a certain portion of healthcare costs (e.g.,deductible and copayment) is called:

• A) cost sharing.
• B) equalizing.
• C) standardizing.
• D) community rating.

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Definitions:

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.

Marginal Costs

The increase in total cost that arises from an extra unit of production.

Fixed Factors

Inputs in production that cannot be altered in the short term, such as buildings and machinery.

Output

The amount of goods and services produced by a business, industry, or economy.