Self-Employed Individuals Are Allowed to Deduct the Cost of Health

question 18

True/False

Self-employed individuals are allowed to deduct the cost of health insurance for themselves and their families only as an itemized deduction.

---

Definitions:

Marginal Revenue

The incremental revenue procured by selling an extra unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product or service, crucial for pricing and production decisions.

Purely Competitive Firm

A business operating in a market where there are many buyers and sellers of a homogeneous product with no single entity able to influence the market price.

Normal Profits

The minimum level of profit needed for a company to remain competitive in the market, also seen as the opportunity cost of capital.